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Growth Stocks Continue to Falter, With NASDAQ Seen Gapping Lower on the Bell

CROSS ASSET
  • E-mini S&P drifting further in recent trade, hitting fresh lows and ebbing through the overnight level of 4650. This puts the index at the lowest levels since Dec22 as the Christmas rally continues to fade.
  • Across Wall Street, the NASDAQ is leading losses (mimicking the pattern seen last week), and is indicating a lower open later today to the tune of around 1%.
  • Using Europe as a guide, tech and industrials names are leading losses, with just energy and financials managing to keep their head above water. This further supports the rotation theme away from growth names as global curves re-steepen and US yields continue to climb (US 10yy touching 1.8064% this morning, highest since Jan'20 - very much pre-pandemic.
  • Across currencies, this is translating into a firmer JPY - pressing USD/JPY well through 115.50 and EUR/JPY south of the 130.57 200-dma.

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