City A.M. 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.
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)