STATE OF THE MARKETS
The Stocks’ rout continues . US stocks tumbled further on Tuesday after reports of better-than-expected jobs opening and consumer confidence that would give the Feds more reasons to hike rates at least 75 basis point this September. Russell (-1.45%) fell the most, followed by Nasdaq (-1.12%), S&P (-1.10%) and Dow (-0.96%) as the Dollar firm above the 108.80 barrier. Bonds continued to be sold-off, sending yields higher across the board, with the 10Y benchmark back above 3%, at 3.14% as New York closed.
In the commodity markets, global recession fears and Dollar strength continue to weigh on major commodities, with crude oil falling to $90.30/bl before settling around $92.00/bl as New York closed. Gold lost bids and drifted lower on Dollar strength, testing $1715/oz, as at writing. Elsewhere, similar fate engulfed iron ore that continued to fall below $105/tn.
In the FX space, sentiments turned bearish as demand for safe haven Yen returned as Dollar seized the helm of demand in the long term accounts with Euro in the short and medium term. Demand for commodity currencies pulled back amid sour risk sentiments.
On Wednesday, markets may expect another volatile trading while looking for earnings reports from Veeva System (VEEV), Brown-Forman (BF/B), MongoDB (MDB), Okta (OKTA), Cooper Companies (COO), Pure Storage (PSTG), Five Below (FIVE) and Semtech Corp (SMTC) as well as the latest numbers on US mortgage application, ADP employment reports and Chicago PMI. EIA petroleum status will be in the spotlight for energy traders.
OUR PICK – No New Pick
We stay on the sideline. With NFP ahead this Friday and VIX continuing to rise above 26, we see choppy markets ahead and decide to stay on the sideline for now.
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Disclaimer:
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.