Risk-on in the making
|S&P 500 has good odds of having reached a local bottom, and performance around my yesterday‘s level of 3,752 would reveal the index direction for today. As for non-farm payrolls, I‘m looking for the number not to disappoint, and to have in the end a somewhat positive effect on stocks. The initial worry about a positive number implying the Fed gets more leevay in being hawkish, needs to wear off first.
What‘s remarkable about today, is that the no bond yields retreat (to the contrary, yields are up) is still sending the dollar down while precious metals and commodities are sharply higher. The lion‘s share of the explanation could be a fundamental one – Saudi Arabia has declared China to be its reliable partner, which isn‘t a stunner to anyone paying attention, including to the geographic destination of Saudi Arabia oil where Asian customers rule.
The earlier prediction of real assets benefiting more than stocks as the S&P 500 weighed down by the troubled tech (check Monday‘s extensive article for outperforming sectors), is playing out in plain sight – and cryptos are likely to do likewise well.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.