Highlights

State of The Markets

Author: MFMTeam   |   Latest post: Thu, 24 Jun 2021, 9:30 AM

 

Investors Cautious Amid Inflation Data

Author:   |    Publish date:


STATE OF THE MARKETS

Investors cautious amid inflation data. Global markets took a cautious stance on Tuesday as investors await US inflation numbers on Thursday. The China inflation released Wednesday pointed to a sudden 9% jump in cost of raw materials, sending major Asian bourse lower. Nikkei (-0.35%) closed lower while FTSE (-0.56%) is down as of this writing. S&P (0.00%) and Dow (-0.09%) gapped lower in pre-market Wednesday as the US10Y benchmark fell to 1.50% in the European session.

Crude futures continued its upward trajectory, breaking $70.50/bl, in anticipation of a 2 million barrel reduction in US crude inventory. Gold was on firm bid as yields fell, though remains capped below the $1,900/oz mark.

The fall in US bond yields, sent King Dollar (DXY) in limbo around the 90 handle, while short term traders lifted Swiss to the forefront of demand. Risk off seems to be the order of the day as the commodity currencies were on offers, while safe havens on bids. Euro and Sterling remain in a tug of war as markets await the ECB decision this Thursday, while Loonie is on edge as BoC is expected to keep its forward guidance on rates.

OUR PICK – No New Pick For Equities

Wait and see for now. At this juncture in the equities market, where capital outflows were the order of the week for the past 9 weeks; we rather stay put for now as the market is trying to break from its range. Though breadth is mostly bullish, showing that investors are accumulating selective stocks, inflation and yields concerns might derail that momentum and give a better level to participate later in our view. Let’s stay on the sideline for now.

Trades updates:  We are out of PFE for now, we look to close MO around $48.50, we remain bullish AUY and will re-entry if stopped, AUD/USD and EUR/USD remain active, we remain bullish T and bearish AUD/NZD.

Join us at MFM’s TradeCopy

 
 

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.

 

Share this

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
 
 

5886  3836  891  244 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 MRIN 3.51+1.80 
 WISH 14.39+0.78 
 TRCH 4.75-0.17 
 SNDL 1.000.00 
 CLOV 13.79-0.04 
 AMC 56.70-1.60 
 F 15.26-0.16 
 DBGI 5.36+1.27 
 SQQQ 9.52-0.18 
 AAPL 133.41-0.29 

TOP ARTICLES

1. CryptoNews of the Week CryptoNews
2. Markets Mixed Amid Conflicting Feds State of The Markets
3. Daily Futures Trading Strategy 24 June 2021 Where Futures Lies
4. Daily Futures Trading Strategy 23 June 2021 Where Futures Lies
5. Wall Street Breakfast: Tales From The Crypto Wall Street Breakfast