RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Disclosure and Terms of Business for further details.

Search LOGIN

Dow hits intraday record high

 

 

TAKEAWAYS

 


•    Dow Jones industrial average rallies 400 points, hits a record high
•    Nasdaq 100 index drops over 2%, falls into correction as tech stocks crunched again
•    Tesla stock drops 5%, loses nearly $250 billion in value in one month
•    Disney stock hits record high as California plans to reopen theme parks
•    Dollar rally extends on Monday as bond yields rise
•    US 10-year treasury yields rise back over 1.6%
•    Gold drops $20, sinks further below $1700 per oz
•    Oil sees profit-taking after Brent crude reached $70 per barrel
•    Rotation to ‘cyclical’ stocks sees big jump in European indices
•    VIX index rises over 25 as volatility picks up
•    DAY AHEAD: Eurozone GDP

 


BEST CHART
Brent crude oil– Weekly Candlesticks
 


Source: GKFX / MT4 (March 8, 2021)

Brent crude oil has pulled back from topping $70 for the first time since January 2020 and its highest since May 2019. It’s a profit-taking move at major resistance and a big round number. 


GURU WISDOM


"Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off." — Carlos Slim Helu 


MARKETS


*Daily closing price
↘ EUR/USD    1.1846        (-0.67%)
↘ GBP/USD    1.3819        (-0.23%)
↗ USD/JPY    108.92        (+0.48%)
↘ S&P 500    3821.35    (-0.54%)
↗ Euro Stoxx    3,763.24    (+2.55%)
↘ Hang Seng    30,159.01    (-1.92%)
↘ Gold        1682.66    (-1.47%)
↘ Oil (Brent)    68.00        (-1.96%)
↗ Bitcoin    51,800        (+1.51%)

 


NEWS


The rotation trade was on clear display on Monday with a chasm opening up between the major US indices. The Dow, full of cyclical reopening stocks and the Nasdaq full of stay-home technology stocks are going in opposite directions. A new record high in Disney stock on news that California is making plans to reopen theme parks added to gains in the Dow.


While the Dow hit a new intraday high the Nasdaq dropped into correction territory led lower by Tesla, which has lost nearly a quarter of a trillion dollars in value in just a month. European indices, which include a lot of cyclicals like bank and materials stocks jumped.


In macro markets, the 10-year US Treasury yield rose back above 1.6% and is close to the ‘spike high’ that the caused the first wobble in stock markets this month. The dollar gained ground thanks to the relative yield advantage as EUR/USD dropped under 1.185 and gold fell another $20 to near $1680 per oz. 


Oil traders took the opportunity to fade the move over $70 in Brent crude after a Saudi tank was the target of a drone strike. The 70-level comes after a massive rally that has gone almost unabated since November.


DAY AHEAD 


*Times in GMT
07:00 – Germany Trade Balance s.a.(Jan) [€16.2 B Exp vs. €16.1 B Prev]
10:00 – Eurozone Gross Domestic Product s.a. (QoQ)(Q4) [-0.6 % Exp vs.     -0.6 % Prev]