Treasury yields dropped off in US trading yesterday and yet, stocks were battered as tech shares were the major drag. The dollar ended up trading more mixed after a brighter start but the key pair i.e. USD/JPY is still holding above the 150.00 mark, even after a suspicious dip yesterday here.
And now as Intel and Amazon reported better earnings, we are seeing equities breathe a sigh of relief. That being said, it doesn’t take away from the heavy losses yesterday and so far this week. But with Treasury yields still flip flopping, that is making it tough to read into broader market sentiment for now.
Not to mention that we might still get safety flows ahead of the weekend as the tense situation in the Middle East is still persisting.
Looking to European trading, Spanish Q3 GDP will be on the agenda but there isn’t anything to really jolt traders in the session ahead. We could get a more tentative one as we await the US PCE data later on before all the mixed flows start to paint a clearer picture again in US trading I reckon.
0645 GMT – France October consumer confidence
0700 GMT – Spain Q3 preliminary GDP figures
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
