City PM 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.
[brid video=”737450″ player=”24372″ title=”A%20Tale%20of%20Two%20Markets%20%20ShortView%20Morning%20Market%20Hit%20(9th%20Mar%202021)” duration=”168″ description=”Learn more about the Daily RAG here: https://www.longvieweconomics.com/what-is-the-daily-ragSubscribe to the Daily RAG here: https://www.longvieweconomics.co…” uploaddate=”2021-03-09 12:12:19″ thumbnailurl=”https://cdn.brid.tv/live/partners/18445/thumb/737450_t_1615291969.png” contentUrl=”https://cdn.brid.tv/live/partners/18445/sd/737450.mp4″]
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)