Overseas Buyers Scoop Up U.S. Shares (Bullish or Bearish)?

No crowd buys stocks of other countries intelligently. For decades, heavy foreign buying in the U.S. stock market has served as an excellent indicator of major tops.

It Keeps on Giving

Sentiment is mixed, as the Deutsche Bank selloff revived the banking stress on Friday. The DBK shares fell 8% and its CDS spiked after the bank announced to redeem a tier 2 subordinated bond earlier.

Process of Restoring Confidence Will Take Quite Some Time

Even if no new ‘individual cases’ come in the spotlights, the process of restoring confidence will take quite some time. The US 2-y yield returning above the 4.0% barrier in a sustainable ay could be a first indication that stress is easing.

GBP/USD – Will BoE's Bailey Shake Up the British Pound?

The British pound is trading quietly on Monday. In the European session, GBP/USD is trading at 122.49, up 0.15%. The pound has looked sharp of late, and last it touched a high of 1.2343, its highest level since late January.

Bitcoin Stuck at $28K

Bitcoin is down 1.3% over the past week, finishing around $27,800. Ethereum lost 2.7% to $1760. Other leading altcoins from the top 10 showed mixed dynamics: from a decline of 8.2% (Polkadot) to a growth of 13.6% (XRP).

Japanese Yen Suffers the Most on Currency Markets

The Japanese yen suffers the most on currency markets. Risk-on and the core bond yield rally lifts USD/JPY from 130.56 to 131.68.

Yields Rebound

The beginning of the week has been characterised by relief in equity markets and a rebound in both nominal and real yields as markets have priced back in a higher likelihood of more global rate hikes to come.

Bank Stocks Rebound, Gold and Bitcoin Fall

Bitcoin fell sharply to below $27K per coin on news that Binance and its CEO were sued by CFTC for allegedly failing to properly register. The firm is said to have allowed its clients to trade derivates since at least 2021, and these derivatives are not subject to American jurisdiction, and that Binance should’ve registered with the agency years ago, and that they continue to violate CFTC’s rules.

Dollar Remains in Defensive, Even Against Yen

Dollar Remains in Defensive, Even Against Yen

USD/JPY – Japanese Yen Tests 131, BOJ Core CPI Eases

The Japanese yen is in positive territory and broke below the 131 line in the Asian session. USD/JPY is trading at 131.17, in Europe, down 0.30% on the day.