State of The Markets

Stocks Tumbled On Tax Selling

Publish date: Thu, 29 Dec 2022, 09:19 AM


Stocks tumbled on tax sellingUS stocks tumbled further on Wednesday after investors continued to sell on tax purposes before the year end. The small cap Russell (-1.57%) fell the most, followed by Nasdaq (-1.35%), S&P (-1.20%) and Dow (-1.10%) as yields continue to climb higher across the board. The rate on the 10-year T-Bill hitting a seven-week high of 3.88% and the two-year landing at 4.43% as the Dollar index continued to firm above the 104 handle.

In the commodity markets, crude oil was under pressure after reports of Russian’s retaliation on the price cap imposed by the European Union. The black gold settled lower, near $78.85/bl, as New York closed. Dollar strength continued to push gold lower, near $1,803.75/oz, though iron ore climbed further to $110.80/tn as China relaxed its Covid restrictions.

In the FX space, short term traders were quick to sell the overbought Aussie and Loonie, while keeping Kiwi and Swiss in demand. Aussie, Kiwi and Loonie, however, remained in demand in the medium term accounts as Euro flipped to offer. Long term sentiments were little changed.

On Thursday, markets may remain choppy as long term investors look to cash out on further rally in equities while short term traders may look to scoop some bargains as players continue to rebalance their portfolio for the year end book closing. Other than US jobless claims and EIA petroleum status report, no earnings are scheduled for release.

OUR PICK – No New Pick

No new picks amid thin markets. Markets are gearing for the year end book closing and new year holiday. We stay on the sideline for now.


This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.


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