Markets are off the extremes looking for direction. Will Risk off gain short to medium term traction or will the trend prevail?
Stimulus and the Feds balance sheet supports the latter while common sense – if existing in the markets – seem to support the former.
Indexes could recover off the Thursday Morning lows but for now lack the strength to reach new highs, the USD Index fell in line with 10 year rates but remains above the 90 support level.
Chinese Retail Sales disappointed massively but did not have a huge impact on market sentiment.
Bitcoin sold off massively after Elon Musk announced. Tesla would no longer accept the crypto currency due to environmental concerns. It seems strange that he continues to announce this kind of market moving news via Twitter.
German Bunds trade at the highest level in 2 years at only -0.1%.
Next key event is the Japanese GDP during the night and the EU GDP tomorrow.