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Equities Post Scant Recovery Off Pullback Lows

CROSS ASSET
  • EUR/USD headed through to the Thursday European open at the lower levels of the session, although intraday mild support at 1.0941 and 1.0930 remains intact for now.
  • Markets continue to ponder the sharp slide in equity prices late yesterday: e-mini S&P shed close to 90 points off the session high and while futures are in positive territory on the day, the bounce of lows has been minimal.
  • The moves across stock markets were not headline-driven and generally isolated to equities, rather than a broad risk-off move in asset markets.
  • We noted sizeable sell programs crossing via the NYSE Tick Index, with multiple instances of 1000 names chalked up, culminating in one sizeable program of 1875 stocks, the largest since Jul 6 and before that Mar 9 in SVB turmoil.
  • Focus turns to the UK public sector net borrowing stats at the open, ahead of US PCE numbers and the weekly jobless claims stats. ECB's Lane is set to speak, although he appeared yesterday - meaning new policy messaging is unlikely.

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