A look at the day ahead from Julien Ponthus.
The testimony of Gamestop super-bull Keith Patrick Gill, aka Roaring Kitty, went instantly viral after it was published by the U.S. House Financial Services Committee last night.
It contained the pithy phrase “In short, I like the stock” -- a reference to the popular sarcastic meme used on social networks used by retail stock traders on social networks.
Still ‘Gamestonk’ has long stopped being at the center of action on Wall Street which was relieved at the sudden pull back of 10-year Treasury yields to 1.27%, a whole five basis points off recent 11-month highs.
It was down to the Fed again; its meeting minutes reassured markets it would not taper stimulus purchases until there was “substantial further progress” on its twin goals. That softened the impact of forecast-beating economic data, including a 5.3% rise in retail sales and producer inflation doubling from the previous month.
In any case, it was a lacklustre session on Wall Street though investors kept the reflation trade in play, rotating further out of technology shares, a trend tracked in Asia this morning. Futures indicate a weaker open for Europe too.
The dollar index meanwhile is holding its own, indicating a faster economic recovery for the United States.
Commodity traders have embraced the reflation trades too, with oil prices at new 13-month highs (supported also by Texas production outages) while copper is at its highest in nearly a decade. Key developments that should provide more direction to markets on Thursday: -Barclays resumes dividend payouts as annual profit halves; Credit Suisse targets lending volume after better-than-expected Q4 loss -Daimler sees significant revenue, earnings gains amid pandemic recovery -Italian PM Mario Draghi won a confidence vote in the upper chamber of parliament. -Turkish central bank meeting -Policymakers speaking: ECB Board member Isabel Schnabel, Norway central bank governor Olsen, Fed governor Lael Brainard -U.S. weekly jobless/Philly Fed index for Feb -US Treasury auctions 30-year inflation-linked bonds
Reporting by Julien Ponthus