After yesterday’s sell off (Nasdaq 100 had worst day since March), it feels like investors are debating whether this is simple profit taking or the beginning of a genuine sell off. Our view is that no real damage has been made (yet?!). In the US, it is true that the Dow, S&P and NDX only fell to 7 day lows but the reality is that they are still trading above their 25 and 50 day moving averages (and perhaps it is too early to call yesterday’s move a rotation?). Here in Europe, we are still trading within the ranges of the past few months and the themes continue to be the same (FTSE 100 the loser in the region after it made a 3m closing low yesterday). Focus this afternoon moves to Nonfarm Payrolls data (1371k vs est. 1350k) but I will leave my US colleagues to comment on it.
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