Reopening Trade Takes Hold
We highlighted a potential peak in US cases and shift in Fed tone early on Monday, a theme the market has run with to start the week. Commodity currencies led the way again on Tuesday and US equities hit another record high. Importantly, within the US equity space there was a decided reopening bent with casinos and hotels as the top gainers, while consumer staples and Pfizer lagged.
For now, the trade is all about positioning for a crest in covid cases and repositioning for the reopening. It's an opportunity bulls don't want to miss.
Given the strength of some of the reversals, the momentum in this trade could last for some time, especially if Powell stays dovish. Beyond that, the market may focus on the demand picture. There were some warning signs in a soft Richmond Fed Tuesday at +9 vs +25 prior but new home sales were slightly stronger.
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
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