May 13


  • BY:
  • May, 13th, 2014 8:30 +00:00

Good morning,

In Asia the Nikkei index outperformed other indices in the area and rose 276 points to 14,425 (+1.95%). The Hang Seng in Hong Kong gained 69.16 points to 23,330.77 (+0.31%) and in Shanghai the CSI dropped 2.14 points at 2,050.73 (-0.10%).

In US yesterday the S&P closed on its intraday high at 1,896.65 (+0.97%), up 18.17 points and Nasdaq gained 71.99 points at 4,143 (+1.77%). The DJIA made a new historical high and closed at 16,695.47 (+0.68%), up 112.13 points.   Retail Sales figures are going to be released today in US at 12:30 GMT and this macro data can have an impact on the current market sentiment of equities, that at the moment is obviously positive.

Gold is down 3.8$ at 1,292 $/oz (-0.29%) and Silver is trading at 19.48 $/oz (-0.36%). Crude Oil still trading above 100 $/barrel at 100.46 $/barrel (-0.13%).

In Europe  at 8:28 GMT the Stoxx50 is up 8.02 points at 3,214.99 (+0.25%) and the FTSE in Uk is at 6,871.41 (+0.29%), up 19.66 points.

In the FX market EurUsd is up 6 pips at 1.3765 (+0.05%) and GbpUsd is losing 24 pips at 1.6844 (-0.14%).  The Swiss Franc is up 7 pips vs the greenback and UsdChf is trading at 0.8871 (-0.09%).  UsdJpy still above 102 at 102.32 (+0.19%), up 19 pips.  Both EurUsd and GbpUsd made already a 2014 top and seems that they are developing a reversal pattern. The current trading environment reminds what happened in 2007 when  risk reversal trades on currencies were  placed before equities reached their tops. This is not a bearish call but considering several factors like the slowdown in China, P/E ratios for many tech companies that went to the sky, tapering, and then the IPO fever, a market correction would be not considered a "black swan" event at all.