Equities Mixed As Summer Rolls

STATE OF THE MARKETS

Equities mixed as summer rolls. Global equities were mixed on Monday as August dashed in with thin volume of summer trading. Dow (-0.28%), S&P (-0.18%) and Nikkei (-0.80%) were in the red, while FTSE UK (+0.70%) edged higher, amid mixed sentiments about the global economy. Rising global cases of delta Covid variant spooked investors, but rising vaccination rate somewhat calmed the jitters. Yields were seen rising as bond prices fell from falling demand. The US10Y went up+0.012 to 1.18% as New York closed.

In the commodities market, crude futures fell from the high of $73.50/bl to $71.10/bl as New York closed after reports of slowing consumption from China and the United States. Gold remains on firm bids above the $1,800/oz handle as investors’ concern on Fed’s ability to taper and hike rates lingers until September.

In the FX space, cautious tone led Swiss and Yen to lead the demand for medium and long term accounts with Sterling and Kiwi, while Euro was seen synching across all accounts horizons. Short term traders seemed to still bank on oversold Aussie, Kiwi and Euro to buy on the dips. US employment figures will be on close watch this week.

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G8 CURRENCIES SENTIMENTS

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

WALL ST MOST ACTIVE

** % Change here refer to price

WALL ST TOP FLOWS

** % change here refers to volume

TOP 5 BLOCK ORDERS

OUR PICK – No New Pick

No new pick as we had three losses in a row. Last week was a bad week for Dollar (DXY) as it reeled off the 93 handle and at 92 as of this writing. That being said, the uptrend is still intact as speculative positions are still net long and what looks like a double bottom has been formed on the weekly. Nevertheless, since the Dollar rebound was very much run on the yield narrative, and Feds will not convene until September; we might see another drop for the next few weeks especially if US employment figures are not as expected. We expect resistance around 92.50 minor and  next major support at around 91 handle.

Trades updates:  We will continue to accumulate AUY as the stock now pays dividends yielding 2.67% at current price, we remain bullish T and will accumulate as dividends yields now at 7.40%, we remain bullish COG and will accumulate as dividends yields now at 2.73%, we remain bullish CLVS, VIPS while bearish GPRO, APA, and GE. (Note: APA pays 0.55% while GE’s dividend yield is at 0.37% and CLVS, VIPS and GPRO currently does not pay any dividends)

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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.