Last week’s roller-coaster movements in the US stocks sent mixed messages to investors. Have equities found a near-term bottom or “sell the rally” is still the current strategy? Hotter-than-expected US CPI data again boosted rates, with the US 10-year bond yield rising above 4% on Friday, hammering equities down, though Dow finished higher for the week. With major US indices flirting around the year-low levels, the major events that could overshadow the current gloomy macro scene will be the upcoming major US tech company earnings this week. Netflix is to report its third-quarter earnings on Wednesday, followed by Tesla on Thursday. In addition, China’s third-quarter GDP will be also a focus for investors to further navigate the country’s economic trajectory with the zero-covid policy still in place. Certainly, nothing turns positive yet, hence, it will be too risky to speculate about a market bottom.Click to enlarge the table
What are we watching?
- VIX stays above 30: The market’s fear gauge, the CBOE volatility index stayed above 30 for the last five trading days, suggesting that further volatilities are ahead. See VIX movements
- USD/JPY soars to a 32-year high: The pair accelerated surging to 148. 75 after the BOJ reiterated the Ultra-loss monetary policy. Seems the said exchange rate intervention by the BOJ had little impact on the Yen. Check on USD/JPY
- Crude oil slumps: The oil prices plummeted again amid Recession fears and a strong US dollar, reversing most of the gains from the week before. Trade oil now
- Hang Seng Index falls to an 11-year low: Chinese tech shares got hit by Washington’s curbs on Chinese chipmakers, with the US-listed Chinese shares slumping to fresh year-lows. See Chinese tech shares' charts