When I Dip, You Dip, We Dip….The growth/momo traders have stepped in for some good old fashioned panic-buying today, across every index, but mainly in big-tech, lifting the Nasdaq up a stunning 4% from last night's close. Yesterday’s reversal of Growth/Value fortunes was remarkable, and today’s reversal of the reversal is equally so. Reports of an intervention by the Chinese govt buying this morning initially stemmed the overnight bleeding and encouraged a heck of a Turnaround Tuesday for the Nasdaq, which has the index back above 13,000. Either way, the BTD crowd came in firing this morning, bigging up all the major US indices. Of course, green arrows for Nasdaq are also predicated on bond yields behaving, and after the ruckus the 7-yr Treasury auction 2 weeks ago, traders were on edge going into the 3-yr this afternoon. However, solid buyside demand met the supply and helped push yields lower across the curve, as the bond market collectively exhaled. There are plenty more catalysts left this week that could stir things up again in either direction. Feb CPI / PPI later in the week are also circled on calendars, and with Crude and Coppers moves since January, you can expect some inflation heat will have investors once again sweating over Powell's "transitory" declarations (though crude and copper are both retracting gains today). Have we seen the worst of short-term readjustment towards a broader recovery and stronger economy? The path to the long-term cyclical revival may have already begun, but that would mean cyclical assets have further to run.
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