Daily Market Update Apr 26
Sentiment remained sour yesterday across Asia and Europe. Equity indices in mainland China were down close to 5% on the day as worries about a potential lockdown in Beijing grew with more expansive testing. SPX tested the 4200 support level before rising to close a shade below the 4300 level.
News that Twitter had accepted Musk's USD 43.4 billion takeover offer likely helped boost the Tech sector, which led all gains on the day.
Twitter is still trading below its takeover price of 54.20 though and Tesla fell on the day. The acquisition is still pending regulator approval and contingent on Musk getting together the USD 21 billion required in equity financing.
Crude rebounded but WTI stayed below the 100 level. Crypto saw bids come in once again around the 38-39k level in Bitcoin, which now once again trades above 40k. Gold, highly rangebound of late, dipped below the 1900 level after threatening to break above the 2k mark not too long ago.
The yield curve stayed the same too as yields overall moved lower - the 5s10s is still mildly inverted and the 2s10s is under 20 bps now with the 10Y at the 2.8% mark.
The US stated overnight that Russia had been weakened by the war as it announced another USD 178 bn aid package for Ukraine. It hoped that the high economic and military cost of the invasion would deter similar actions in the future.
UK estimated Russia had lost close to 15,000 troops since the war began.
We're light on data today and price action is likely to stay subdued given current sentiment. Have a great day ahead