The US stock market bounced back after 4 consecutive days of declines, yet the USD is weakened, and the UST10Y yield touched its highest level this month in reaction to a surprise move from Japan’s central bank that plans to raise their long-term government bond yields by as much as 50bps. This plan has also encouraged an increase in yields on several global bonds, potentially becoming a suppressive factor in Technology sector stocks. The rising prices in several energy commodities create a positive sentiment in the market due to the USD weakening.
The JCI is expected to move still in the consolidation phase today, as long as it fails to break through the closest MA10 Resistance. The market participants are still waiting for the Governors Meeting announcement next Thursday regarding the 7DRR interest rate as the last monetary policy this year.
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