Free Trial

Themes Extend Following London Close, With Banks Leading Equities Lower

CROSS ASSET
  • Price action present throughout the European trading day is persisting here after the London close, with fresh highs being printed in the USD Index (largely due to EUR/USD's decline today - with the single currency the weakest in G10 outside of Scandi FX). The move coincides with further gains for the US 10y yield, which is through the earlier session highs and prints 1.86% for the first time since the beginning of the pandemic.
  • The risk-off theme is consistent through the sectoral breakdown, with financials sliding sharply (led by Goldman Sachs, off 7.7% on poor earnings) alongside tech and consumer discretionary names.
  • This has put the e-mini S&P briefly below the 100-dma of 4570.6, seen as a level of key support for stocks (held price action well through multiple dips in December) and a confirmed break would open 4520.25 and 4492.00. The index is now around 5% off the alltime highs posted on Jan4th.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.