STATE OF THE MARKETS
Stocks rebounded on improved risk appetite. US equities rebounded on Thursday as investors appetite returned after strong earnings reports plus better economic data. Continued rise in home sales, significant reduction in jobless claims and better than expected earnings for Apple, Facebook and McDonald’s sent the Dow (+0.99%) up 300.2 points, Nasdaq (+0.50%) up 66.6 points and S&P500 (+0.98%) 36.6 points up. The 10Y yield was also up to close around 1.05% compared to 1.01% on Wednesday as optimism improved.
Crude however, remain depressed, below $52.25, as markets took a wait and see attitude on the impact of Saudi’s production cut initiative. Saudi Arabia took a voluntarily output cut of 1 million barrel per day for February and March as part of the OPEC+ deal to hike the black gold price. The yellow metal gold, on the other hand, remained firmly bid around the $1840.80/oz as investors see rising inflation on the horizon when US senate approved the new $1.9 trillion stimulus plan.
In the FX space, Dollar continued it’s short-covering trajectory as demand for the long term accounts notched higher while short term accounts took a breather. Demand for the comdolls were seen deteriorating in the long term while Sterling and Euro hold steady. Improved risk appetite has sent the safe-haven Yen and Swiss to the back burner while long term outlook remains steady.
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