Stocks Wobbled As Optimism Waned

STATE OF THE MARKETS

Stocks wobbled as optimism waned. Global equities wobbled Thursday as optimism index waned in the wake of adverse vaccine reactions and uncertainties over US stimulus package. Dow fell 0.23%, S&P 500 lost 0.13% and Nasdaq together with FTSE UK, both added 0.54%. Asian shares fell in early Friday trading, with Nikkei and ASX, both down 0.54%. The benchmark US 10Y yield fell and closed below 0.91% as investors seek safe-haven assets.

Crude, however, was muted and surged higher to close above $47/barrel in search of liquidity buyers. Gold on the other hand, remain well bid though closed below $1,850/oz as Dollars (DXY) struggled to maintain support at the 91 mark. The primary beneficiaries were the commodity dollars, with Kiwi sent back to the demand side in the short and medium terms.

Sterling continue to suffer as Brexit talks seemed impasse and a deal by the year end looks almost improbable, though negotiators agreed to continue talking. British PM Boris Johnson’s comment of “strong possibility” exist that Britain and EU would fail to strike a trade deal, roiled markets with uncertainties and send Sterling lower, though remained supported by the greenback in the long term.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is 
weekly and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

OUR PICK – Flat,

With growing uncertainties and going into weekend, we decided to be flat. There are strong evidences that Dollar is making a come back as it approached extreme oversold. Block orders worth of $400m combined Euro trade, liquidity hunting in oil, among others, are indications that traders are expecting that more short covering in Dollar is to come in the next few weeks. It’s best to let markets confirm that conviction before jumping into trades. Have a good weekend!

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.