STATE OF THE MARKETS
Stocks pause amid Dollar sell-off. US stocks took a breather on Wednesday amid broad Dollar sell-off despite demand in US treasuries. Dow (-0.19%), S&P (-0.63%) and Nasdaq (-1.21%) including Russell (-1.97%) closed in the red while bonds’ demand increased, sending yields lower across the board. The 10Y benchmark fell to 2.36% as the Dollar index closed below the 98 figure, forming a triple top.
In the commodities market, crude climbed higher after news of more than expected inventories reduction. The black gold settled around $106.35/bl as New York closed. Inflation concerns continue to push gold higher, closed above $1,932.45/oz while iron ore settled above $150.60/tn
In the FX space, sentiments among short and medium term accounts seemed more bearish as safe-haven Swiss advanced further in the demand territories alongside Kiwi and Euro. Long term sentiments were unchanged.
On Thursday, markets look for progress in the peace talks while waiting for earnings reports from Walgreens (WBA), nCino (NCNO), BlackBerry (BB), Duck Creek (DCT), Blend Labs (BLND) and Sharecare (SHCR) as well as the latest US jobless claims, productivity and costs figures to assess the health of the US economy.
OUR PICK – No New Pick
We decided to stay on the sideline for now. With VIX hitting support at 20 points, we see risk of rising volatility especially in the midst of continuous flow in the safe-haven Yen.
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