Stocks Extend Losses Amid Hawkish Feds

STATE OF THE MARKETS

Stocks extend losses amid hawkish Feds. US stocks tumbled further on Monday after major central banks decided to keep rate hikes on schedule during the Jackson Hole symposium over the weekend. Nasdaq (-1.02%) fell the most, followed by Russell (-0.89%), S&P (-0.67%) and Dow (-0.57%) as investors dumped bonds and Dollar in a month-end rebalancing. As at writing, 1Y notes yield 3.45% with the 2Y at 3.42% and the 10Y benchmark at 3.06% as the Dollar was sold and settled below the 108.80 barrier.

In the commodity markets, crude rebounded and settled above $96.55/bl amid OPEC willingness to cut production and new conflict in Libya that may disrupt supplies. Gold was under pressure, but on firm bids above $1,720/oz as investors watched the new US-China tension on Taiwan. Elsewhere, iron ore continues to drift lower on global recession fears. The commodity settled below $105.30/tn as New York closed.

In the FX space, sentiments seemed bullish as Aussies continued to hold the helm of demand while demand for safe-haven Swiss and Yen retreated across all horizons. Month end rebalancing saw Dollar sold off in the short and medium term accounts while in heavy demand on the long term.

On Tuesday, markets expect a cautious trading ahead of the Labor day weekend while looking for earnings reports from Bank of Montreal (BMO), Baidu (BIDU), CrowdStrike (CRWD), HP Inc (HPQ), Hewlett Packard (HPE), Best Buy (BBY) and Chewy (CHWY) as well as the latest numbers on US home price index, job openings and consumer confidence.

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 refers 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 – No New Pick

We stay on the sideline. With VIX above 25, we see choppy markets ahead and decided to stay on the sideline for now.

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