Risk aversion is intensifying as US stocks tumbled significantly overnight, following First Republic Bank's earnings report, which reignited concerns about the broader banking sector. The troubled regional bank's shares plummeted by nearly half. Concurrently, bonds surged higher, pushing 10-year yield below 3.4% handle. Japanese Yen and Swiss Franc surged following the shift in sentiment, trailed by Dollar. Meanwhile, Australian Dollar led the decline, as it was further pressured by plunging Copper prices. Aussie could be ready to break through 2023 low against the greenback. Canadian Dollar followed as the second worst performer, with Sterling following. Euro is mixed as partly supported by hawkish comments by ECB officials. Technically, it appears that NASDAQ's rebound from 10,982.80 has peaked at 12,245.42, just ahead of 12,269.55 resistance. Immediate focus returns to 55 D EMA (now at 11,779.21). Sustained break there could prompt deeper decline back towards 10,982.80 support. As long as 10,982.80 support holds, outlook would be more neutral than bearish, with another rise through 12,269.55 remaining slightly in favor. However, firm break below 10,982.80 could signal that larger downtrend from 2021 high of 16,212.22 is resuming through 10,088.82 low. In Asia, at the time of writing, Nikkei is down -0.92%. Hong Kong HSI is up 0.59%. China Shanghai SSE is down -0.31%. Singapore Strait Times is down -0.15%. Japan 10-year JGB yield is down -0.015 at 0.465. Overnight DOW dropped -1.02%. S&P 500 dropped -1.58%. NASDAQ dropped -1.98%. 10-year yield dropped sharply by -0.119 to 3.396. |
