Morning Impact: 4/9/24
Equity Indices, Treasuries, FX, Metals, Energy, Ags, Softs and Crypto Futures
🌍 World Equity Indices Cash and US Index Futures
Asia passed a net-higher overnight session. Japan’s Nikkei (+1.08%) attempts to dig itself out of a correction. Hong Kong’s Hang Seng (+0.57%) continued to consolidate it’s reactive uptrend, as does the Shanghai Comp (+0.05%), though the latter works lower off recent highs. However, South Korea’s Kospi (-0.46%) intrigues with an ugly settlement at multi-week lows. We’re going to keep a close eye on this correction. In Europe, FTSE (+0.17%) consolidates while DAX (-0.54%) trades heavy. The sunrise North American calls were steady, with prices adding minor gains as the morning matured.
Stability and a cautious optimism define the current state of the major equity indices. The mini DJIA, reflective of this mood, has found its footing after a dip, hinting at a possible stabilization or even recovery from recent corrective lows, albeit with a guarded outlook. Similarly, the mini S&P and mini DJIA exhibited a lack of momentum to build upon previous gains, pointing towards a market in correction, teetering at the edge of a deeper downturn if support levels fail. Yet, the market's ability to hold off lows suggests a potential platform for future gains.
The mini NASDAQ, having navigated a period without significant correction, underscores a narrative of resilience within a two-month sideways trading range. This consolidation, marked by the index's ability to hold its lows, indicates an underlying support base. Will it continue? This price is balancing cautious optimism, contingent on maintaining these critical support levels without succumbing to downward pressures.
The mini Russell, despite its relatively subdued year-to-date performance in comparison to its counterparts, highlights an interesting aspect of the current market dynamics. Sustaining it’s uptrend, price points towards an underlying resilience to treasury market price developments. We’ll be watching last week’s lows very closely.
💰 Treasury Futures
The overnight treasury complex appears to be navigating through a reaction bounce out of fresh lows. Despite this, the prevailing trend remains downward with the collective leg lower.
Keep reading with a 7-day free trial
Subscribe to Morning Impact to keep reading this post and get 7 days of free access to the full post archives.