Nvidia hits the headlines again - for those that love charting, they will know there was a classic 'Key Day Reversal' (sometimes referred to as a Bullish Engulfing pattern) last Thursday and, since then, the stock has fallen 13%. This is a technical correction, defined when a stock drops 10% or more from a recent peak. So for the first time since April investors will be looking to see where the support levels are, and all eyes will be on the $115 area as this is the 61.8% retracement of April low. Although the Nasdaq was lower, risk sentiment is improving in Europe with the CAC +1.03% and the DAX +0.89%, China and the EU have agreed to start negotiating electric vehicle tariffs, the OAT-Bund 10y spread tightened 4.3bp despite French’s National Rally party making further gains in the polls.
Domestically, betting scandals are in the news and Wikileaks co-founder Julian Assange will plead guilty to leaking US national security secrets and return to his home country of Australia, under a deal with the Justice Department that ends an almost 15-year battle over his prosecution.
Data wise, again we are light, out of the US we have Consumer Confidence at 3pm and speeches from the Fed’s Lisa Cook and Michelle Bowman. Elsewhere in Europe we have Spanish GDP, and Canadian CPI.
Marketwise, the yield on 10-year Treasuries was little changed at 4.23%, West Texas Intermediate crude opens at $81.80, Spot gold fell 0.5% to $2,323.66 an ounce, Bitcoin rose 3.1% from the $60,000 support to $61,344.34 and Ether rose 2.1% to $3,377.48. Currency wise $/JPY opens at 159.40, Cable at 1.2690 and EURUSD 1.0735.
