US Market Open – US Dollar, Gold,Crude Oil,Indices,
- Market chatter that a cure to the Chinese coronavirus sends risk-on markets higher.
- Sterling got a lift as UK PMI data surprises to the upside.
- Tesla’s manic price action under the microscope.
Coronavirus Cure Chatter Sends Oil & Equities Higher
Risk-on markets received a leg-up in early trade on news reports that a cure for the Chinese coronavirus had been found. Equity markets added 1%+ while oil dragged itself of its recent multi-month lows, adding around 2%. Later in the session, a WHO spokesman seemingly poured water on the rumor, saying that there are no known therapeutics against this virus, taking the edge off the risk-on rally.
The British Pound received some positive news from the latest PMI release which showed business activity picking up, beating expectations and December’s outturn. GBP/USD is in a trading range and will need a strong impulse to break higher or lower.
Sterling (GBP) Boosted by Robust PMI Data, Euro-Zone Sentiment Nudges Higher
The stock of the moment Tesla (TSLA) has swung violently, mainly to the upside, this week and is now trading nearly 500% higher than last year’s low print in early June. The question now is how long the short-squeeze can go on for – Tesla is the most shorted stock in the US market – and is the market setting itself up for a sharp fall?
Tesla (TSLA) – Manic Price Action Suggest it’s a Bubble Set to Burst
Oil has picked itself up from its multi-month lows and is now around 2.5% better for the day. US crude is trading either side of notable support and if it is to stem the bear market sell-off will need to consolidate above the $51.00/bbl. level to start with before the $52.00-$52.20/bbl. is targeted. The chart bias remains negative, while the CCI indicator suggests oil is oversold.
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