CityAM TV – Daily Market Snapshot (video)
With US 10 year bond yields closing at a new local high yesterday ( up 1.59 per cent), sector divergence within the equity market has continued to grow.
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In particular, cyclicals have pushed higher, with new highs in the DAX in Europe and the DJ Transports in the US; while, in contrast, US tech/growth stocks were down sharply once again. The NASDAQ100, for example, was 2.9 per cent lower, the Philly SOX index was down 5.4%, and various high profile growth/tech stocks were between four and 10 per cent lower. The key question, therefore, is how long will that divergence persist? And, at what level does a NASDAQ100 long position become attractive?
Key macro data out today includes the US NFIB small business optimism reading (for February); a final Eurozone GDP reading (for 4Q); and credit growth and money supply for China (for February)