It’s still all about risk sentiment as we the week stretches out. Bond yields remain elevated and I’d expect it to stay that way through to the weekend at least. 10-year Treasury yields may stall at 1.90% for now but it doesn’t take away from the surge higher in the opening weeks of the year and the fact that there is still little standing in the way of a push to 1.97%.
As such, that could continue to keep pressuring stocks and I don’t quite like how that is playing out for the Nasdaq as seen here:
Sure, equities are breathing easier after China’s rate cut earlier. Again, that is the case for now.
Dip buyers tried to prove their mettle in trading yesterday but alas, were overwhelmed. As such, the positive mood at the moment may not be as optimistic as it may seem on paper. That’s my take on things at least.
The strong Australian jobs report earlier today has at least led to a breakout in AUD/NZD. The pair has moved to its highest since July last year and broke free of its recent range since the end of December. The 1.0700 level is limiting gains for now but there is scope for the upside to extend to 1.0800 next.
Elsewhere, oil continues to be one to watch as the breakout this week to the highest since 2014 looks to stay the course. WTI is up another 0.3% to $87.20 at the moment.
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