Equities: Stocks finished the day pretty flat, despite some important data coming out data. US and UK GDP estimates for Q4 were both revised upwards, while US home sales fell 7%. Mixed data is most likely what led to the lack of market direction today. Important to note that many of the leading indicators are starting to indicate that we are in for a rough ride to come. The market sentiment is looking to be bullish and continue the run we've had since last March, but is slowly finding less reason to do so, and hence the sideways movement we've had so far this year.
Currencies: The Dollar fell against the Euro and was flat against the Pound. Today was one of the first times that the Dollar fell due to bad US news, previously the safe haven effect had taken precedence. The Yen is rising on the bad news coming out, long Yen might turn out to be a good play. On a separate note, I mentioned yesterday how pundits always recommend going long equities, but never short even in a falling market. The same bias doesn't exist so much in forex because in every trade, one is long one currency and simultaneously short another, hence no such thing as an anti-short bias.
Commodities: Oil was up today reversing most of yesterday's losses, this coming on the back of improved GDP data out of the US. Today broke some of the recent trend of tracking the equity markets closely, though I don't expecting any significant decoupling in the near future. Gold was also up today, probably driven by Dollar weakness. Nothing otherwise exciting going, signing off for the weekend, have a good one!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment