Tech Stocks on the March – Nasdaq up 1%
Despite a relatively quiet day for traders yesterday, US stock markets managed a good start to the week, led mainly by tech stocks including a bounce for AI firm Nvidia. The Nasdaq led the way higher, closing the day up 1.05%, the S&P also had a good run, finishing up 0.57%, however, the Dow managed to close only marginally above flat. Treasury yields once again ticked higher, the benchmark 10-year hitting levels not seen since November and the dollar continued its recent grind to the topside both against the major currencies and on the commodity front.
Emerging FX in Focus for Traders
The dollar has been moving higher over the last few weeks against most of the majors but as usual, this has been a relatively orderly move in markets filled with liquidity in the $6 trillion a day market. However, concerns are starting to increase in the emerging market FX world where the market is less liquid and therefore more likely to see sharp and aggressive moves. Argentina hit the currency panic button overnight and devalued the peso whilst lifting the central bank’s interest rate to 118%. Although this is an isolated case, some traders are looking at other vulnerable EM currencies for opportunities and with many approaching multi-month, multi-year, and all-time lows there could be equal pain and gain out there in the markets.
Mega-Tuesday Trading Day Ahead
It is a huge day on the event calendar today and traders are strapping themselves in for a rollercoaster ride as the market is hit by a plethora of data releases. First up in the Asian time zone, there are the Monetary Policy Minutes from the RBA, the Australian Wage Index data release followed swiftly by the Chinese Industrial Production and Retail Sales numbers. The European session sees the UK employment data released early in the day before the latest German ZEW sentiment number. Swiftly after the New York open the market is hit by the Canadian CPI data, US Retail Sales and the Empire State Manufacturing Index all coming out at the same time.
