Stock Sell-Off Sent Dollar Higher

STATE OF THE MARKETS

Waning investors confidence in the US economy convinced investors to cashed-in and demand more Dollar. All three major US indexes saw a new low since March as major players continue to take profit off the table and ran toward the safety of treasury and cash. Even gold, that is usually a hedge against inflation, was not spared when investors saw a potential deflationary period in the US, shall second lockdown took place after the election.

Crude continued to make a new low around $37.10 before real buyers come to the rescue around $37.15 while speculators with 1,000 block orders was seen around $37.45. Not much action is seen in gold, but silver futures did saw some heavy bidding in the $23.20 region.

The Greenback rose sharply as safe-haven demand continues while Euro suffers from extended lockdown to curtail the rising number of new corona cases in Europe. Risk-off sentiments spilled over to the commodity currencies though demand is still seen for NZD in the long and medium term accounts.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is 
weekly and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

OUR PICK – GENERAL ELECTRIC

Another name that will stay regards of who win the US election is General Electric (GE, NYSE). Used to be one of the darling of wall street but dividend cut since last quarter of 2018, from $0.10/share to a mere dime/share saw the stock price plummeted to 2008 financial crisis level. Coupled with heavy liabilities, it lacks luster to draw institutional investors but has been popular with retail recently, as it picked among the top 10 stocks in Robinhood. Recent US 13F filing showed DZ bank of Germany and Natixis of France have added more shares while Goldman Sachs and Bank of Nova Scotia, among others, have initiated a fresh buy.

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