NQ down 5% & NVDA -11% pre-mkt as Chinese startup DeepSeek threatens US AI dominance
Good morning USA traders, hope your day is off to a great start! Here are the top 6 things you need to know for today’s market.
6 Things You Need to Know
Risk sentiment hit by DeepSeek threatening US AI dominance, NQ -4.8% & ES -2.7%; NVDA -13.5% in premarket trade
European bourses are also mostly in the red, Tech lags with ASML -10.6% while Energy names are hit on this and numerous other factors
Additionally, disappointing Chinese PMI data overnight, Trump’s tariff announcement on Colombia and reports around MXN & CAD also weigh on the risk tone.
DXY is at session lows with 107.00 coming into view, havens lead with USD/JPY probing 154.00 to the downside.
Fixed benchmarks benefit from the above and partially on better-than-expected German Ifo; Central Banks coming into focus
Crude is now modestly in the green, as the USD provides support and offsets initial bearish action on the above and Saudi/US discussing lower prices; Metals lower across the board
USD/JPY IS ON A DESCENDING TREND AND IS CURRENTLY AT PRICE 153.8, I FORESEE A FURTHER DESCEND BECAUSE OF THE LAST 15 MINUTE CANDLE WHICH IS A SELL CANDLE AND A CONTINUATION PATTERN ON PRICE ACTION…I INTEND EXITING THE MARKET AT PRICE 153.6 WHICH IS A GOOD PLACE TO EXIT WITH A FEW PIPS IN PROFITS . THANKS
Parabolic SAR – on the first glance : It has a lot of sense when combined with some postulates of my own ! I’ll need to watch it for some time , but so far it is very promissing
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Orders and hedges offer clues for the EUR/USD outlook
EUR/USD has staged a decent recovery from 2-year lows at 1.0177 on Jan 13. Customer orders and price action in forward looking FX option markets might now offer clues about subsequent EUR/USD expectations.
EUR/USD’s recovery from 1.0177 peaked at 1.0523 on Friday and subsequent setbacks have met demand in the mid 1.04’s. Dealers say there are now more dip buyers, while others prefer to keep their powder dry to sell the USD if it comes under renewed pressure.
Europe’s technology sector led the pan-European STOXX 600 index SXXP lower, down 0.7%, while the blue-chip Euro STOXX 50 STOXX50 dropped 1.4% in early European trading.
The STOXX Europe 600 technology index (.SX8P) fell as much as 4.6%, its biggest one-day drop since mid-October.
Futures on the tech-heavy Nasdaq Composite NQ1! in the U.S. tumbled over 3.1% and S&P 500 futures ES1! sank 2%.
While the first trade war has been averted, it is a risk off start to the week
Stocks off sharply => bond yields down shar[;y =: JPY (and CHF) outperforming… Catalyst: Popularity of China’s discount AI, DeepSeek, which has hit the high valuation AI stocka
For Australia everyone is waiting for Wednesday 02:30 am for CPi hopefully more bullish 📈 might be there & back to the 0.65000 or more 📉 bearish & drop below 0.62500
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