Equities Mixed As Tension Escalated

STATE OF THE MARKETS

Equities mixed as tension escalated. Global equities closed mixed on Tuesday as the US weighed on sanctions after Russia announced its recognition of the Ukraine separatist republics. Dow (-1.44%), Nasdaq (-1.24%), S&P (-1.01%), Nikkei (-1.71%) and Hang Seng (-2.69%) were sold-off, while FTSE (+0.13) and Stoxx (+0.07%) edged higher as cash demand remained elevated.

The Dollar index was on firm bids at the 96 handle, while bonds were sold-off across the board. Yields spiked higher with the shorter 2Y at 1.56%, 5Y at 1.87% and the longer 10Y at 1.94% while the 30Y at 2.24%.

In the commodities market, profit taking sent both crude and gold lower. The black gold tumbled to $91.36/bl while the precious metal was under selling pressure as it approaches $1,920/oz. Elsewhere, iron ore stalled at $141.10/tn as investors continue to weigh the impact of sanctions on Russia-China relationships.

In the FX space, stronger gold powered Aussie to seize the helm of demand in short and long term accounts as Swiss was sent to the back burner. It seemed that short term traders were selling the overbought Swiss and Yen.

On Wednesday, markets look for earnings reports from Lowe’s (LOW), Booking (BKNG), TJX Companies (TJX), eBay (EBAY), Bausch Health (BHC), Live Nation (LYV) and Coterra Energy (CTRA) as well as the latest figures on the US mortgage application index.

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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 – XAG/USD

Riding on block orders. $60 million worth of block orders were noted in the futures market on Tuesday at the 24.20-24.00 level that we believe is more of a technical nature as the metal approaches the descending downtrend line. Aiming $23 the figure in the medium term.

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