Intraday Market Thoughts

Archived IMT (2010.05.11)

by Ashraf Laidi
May 11, 2010 10:35

The 4% Monday rally in US equities resulted into a 4% Tuesday selloff in Shanghai and 1% selloff in the Nikkei, before European bourses sank in the red with 1.6% and 1.1% declines in the FTSE and the Dax. Despite better than expected UK manufacturing figures, UK markets remain jittery due to the potential of a Labour/LibDem deal following Gordon Browns resignation. The concept of selling the bounce remains extends from the euro into global equities. The 2.8% annual rise in Chinese CPI reminds markets of Chinas need to further tighten policy beyond the 75-bps in reserve requirement hikes. Considering that DOW FUTURES ARE DOWN 102 pts, we expect AUDUSD rallies to extend retreat towards 0.8920, with rebounds capped at 0.9010, while AUDJPY is vulnerable to 81.15-20.


Latest IMTs