Stocks Rebound Amid Safe Haven Flows

STATE OF THE MARKETS

Stocks rebound amid safe haven flows. US stocks rebound higher on Wednesday after minutes of the latest Fed’s meeting showed no surprise in expected 50 basis point hikes in the next two meetings. Russell (+1.95%) climbed the most, followed by Nasdaq (+1.51%), S&P (+0.95%) and Dow (+0.60%), while investors were seen buying more bonds across the board. Yields fell lower with the 10Y benchmark below 2.76% as the Dollar index cling to the 102 handle.

In the commodities market, crude was firm around $110/bl after EIA reports of falling inventories last week while gold fell to $1,841.30/oz on profit taking before settling around $1,853.15/oz as New York closed. Elsewhere, iron ore stalled at $133.30/tn as the market awaits a new catalyst for the next move.

In the FX space, short and medium term accounts were more bullish as demand for Yen retreated as Kiwi, Aussie and Sterling advanced further into the demand territories. Long term investors, however, were more bearish as Yen seized the helm of demand from King Dollar.

On Thursday, markets might be bullish after Fed’s minutes but remain cautious while looking forward to earning reports from Dell Tech (DELL), Macy’s (M), VMWare (VMW), Workday (WDAY), Dollar General (DG), Baidu (BIDU), Burlington (BURL) and Medtronic (MDT) as well as the latest figures in US GDP, jobless claims and home sales.

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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

We stay on the sideline. While Russell (+1.95%) climbed the most, followed by Nasdaq (+1.51%), S&P (+0.95%) and Dow (+0.60%); and this may signaled bullish sentiments in the US economy, we still see heavy flows to bonds as yields continue to drag lower. In other words, investors lacked conviction in putting money into the markets. With metals and major commodities already on the move, we rather wait for a pullback and decide to stay on the sideline for now.

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This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities/oz. 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.