- The dollar gains slightly at the opening of the cash session
- US bond yields approach key levels
- Equity indices lose slightly at the market open
The second day of this week brings another dose of volatility to the markets. Just before the opening of the cash session, the US indices tried to rebound, and for a while the US500 and US100 contracts even gained. However, the gains were erased at the start of the cash session as rising US bond yields supports bears. At the time of publication, 10-year bond yields are at 4.68%, while 2-year bonds are approaching the 5.00% threshold. In both cases, yields are about 4-7% short of the peaks reached in October 2023. However, the lower limit of the consolidation channel at the peaks is already within the current range of yields. This raises the question of how much of the upside momentum is still in front of, assuming no further interest rate rises and that the current level is maintained for the long term.
TNOTE (D1 interval)
Rising bond yields put supply pressure on the equity market. On the contrary, the peak set in October 2023 on TNOTE futures set a local low on US500 a few sessions later. It is possible that we will see a similar scenario at the present moment. For this reason, it is worth monitoring TNOTE quotes in the coming weeks.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appSource: xStation 5
US500 (W1 interval)
The closing of the candle last week resulted in the crossing of two EMA lines on the MACD indicator confirming the trend reversal. The last time this happened was in mid-August 2023, which marked a 3-month downtrend on the index. The key level to be defended for the bulls is clearly the zone around 5000 points. Otherwise, we can expect further downward movement in the coming months.
Source: xStation 5
Company news
Ericsson (ERIC.US) is gaining more than 4.00% today after announcing strong results for the first quarter of 2024. The company's adjusted net profit was SEK 0.77, compared to SEK 0.45 a year earlier. The profit included a one-off gain of SEK 1.9 billion related to the settlement of a trade dispute. The company expects sales to stabilise in the second half of the year due to recent contract wins and the normalisation of customer inventory levels in North America.
UnitedHealth (UNH.US) is gaining almost 6.00% after reporting financial results for the first quarter that were higher than market expectations. Nonetheless, the company announced a downward revision to its 2024 EPS forecast to take into account the impact of the cyber-attack and sales in Brazil. The group maintained its revised EPS guidance for the current financial year of US$27.50-28.00 per share, in line with the consensus of US$27.53.
Intra-Cellular Therapies (ITCI.US) is gaining more than 24% in the early cash session after a positive study evaluating lumateperone 42 mg as an adjunctive therapy to antidepressants for the treatment of major depressive disorder.
Tesla (TSLA.US) loses 6.90% after Elon Musk told employees that the company is eliminating more than 10% of its global workforce. The situation has renewed concerns about the company's growth prospects.
Source: xStation 5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.