Access both platforms from your single Saxo account.
NY Open: Who let the bears out?
Michael O’Neill
FX Trader, Loonieviews.net
Summary: There's a storm blowing down Wall Street as yesterday's tech rout gathers pace and blasts leading indices lower still, while in FX, a resurgent greenback picks off the G10 majors.
Wall Street traders are wondering “who let the bears out?” Plunging Tech stocks sunk their FAANGs into the Nasdaq which plunged 2.15% as of 14:00 GMT. The Dow Jones Industrial Average dropped 1.94%, and the S&P 500 shed 1.74% in a holiday-thinned pre-Thanksgiving rout.
There were a lot of concerns spooking traders including falling Apple (AAPL: Nasdaq) shares and the news that Morgan Stanley told clients “we are in a bear market.” Other analysts think that Morgan Stanley may have jumped the gun. They point to a still robust economy, and the prospect for the pace of Fed rate hikes slowing. Also, the S&P 500 needs to drop below 2352.73 which is 20% from its September peak, to qualify as a bear market.
The stampeding equity bears flushed G-10 major currencies into the jaws of the greenback. The US dollar turned a mixed New York opening into steady gains led by a drop in the Canadian, and New Zealand dollars. Another plunge in WTI oil prices boosted USDCAD while weaker than expected GlobalDairyTrade auction results pummelled kiwi. NZDUSD snapped the uptrend from the beginning of November with the break below 0.6840. A move below support at 0.6790 would extend losses to 0.6705. EURUSD was weighed down by a rebound in October US Housing starts. Traders ignored the 0.6% drop in Permits.
Oil prices are another victim of the resurgent US dollar. WTI oil dropped from $57.00/barrel at the New York open to $53.66/b as of 1415 GMT. The dollar’s strength just exacerbated existing selling pressure from concerns that the prospect of slowing global growth due to the China/US trade war and rising US production would more than offset supply disruptions from Iran sanctions and Opec supply cuts.
There were a lot of concerns spooking traders including falling Apple (AAPL: Nasdaq) shares and the news that Morgan Stanley told clients “we are in a bear market.” Other analysts think that Morgan Stanley may have jumped the gun. They point to a still robust economy, and the prospect for the pace of Fed rate hikes slowing. Also, the S&P 500 needs to drop below 2352.73 which is 20% from its September peak, to qualify as a bear market.
The stampeding equity bears flushed G-10 major currencies into the jaws of the greenback. The US dollar turned a mixed New York opening into steady gains led by a drop in the Canadian, and New Zealand dollars. Another plunge in WTI oil prices boosted USDCAD while weaker than expected GlobalDairyTrade auction results pummelled kiwi. NZDUSD snapped the uptrend from the beginning of November with the break below 0.6840. A move below support at 0.6790 would extend losses to 0.6705. EURUSD was weighed down by a rebound in October US Housing starts. Traders ignored the 0.6% drop in Permits.
Oil prices are another victim of the resurgent US dollar. WTI oil dropped from $57.00/barrel at the New York open to $53.66/b as of 1415 GMT. The dollar’s strength just exacerbated existing selling pressure from concerns that the prospect of slowing global growth due to the China/US trade war and rising US production would more than offset supply disruptions from Iran sanctions and Opec supply cuts.
Latest Market Insights
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)