Markets rally ended by U.S. tech giants weak results, no surprise in EU and UK interest rates

US equities were traded in mixed zone on Thursday. The Dow Jones traded lower 0.11% to 34,053, the S&P Index and the Nasdaq continued rally after Fed policy’s decision and Powell’s speech, rising 1.5% to 4179 and 3.25% to 12,200, correspondingly. But after today’s Amazon, Apple and Google repots missing estimates, all tech-giants stocks fell in after-trading hours, ending a risk-on move. Treasury yields were lower with the yield on the 2-year note down 2 bps to 4.09% and the yield on the 10-year note decreasing 3 bps to 3.39%. US Dollar slipped with DXY down 0.13% at 101.61. Jobless claims fell last week to the minimum of 9 months, while today investors will look at data concerning monthly US employment.

Military actions continue in Ukraine, with Donetsk area, especially Bakhmut and Kramatorsk, as main hotspot. Russia’s equity market on Wednesday continued trading in green zone following rally this week: IMOEX ended up +0.6% at 2243 and RTSI traded 0.16% higher at 1004. Ruble strengthened by 0.07% vs USD to 69.72. Today’s opening shows sharp decrease: -0.9% in both IMOEX and RTSI. As for bonds, RGBITR (gov bonds) and RUCBITR (corp bonds) also had some correction, trading at 499.29 and 614.64, correspondingly, with 10Y benchmark yield at 10.37% level.

European markets are mostly lower during today’s trading session, following US tech stocks decline and US key labor data. ECB and BoE both raised key rate by 50 bps, meeting the estimates. On the stock markets, the DAX index in Germany traded this morning lower 0.6% at 15,414 level, the CAC 40 in France is down 0.24% at 7,149 level, while the FTSE 100 in the U.K. was the only outfitter, gaining 0.21% to 7,836 points. 10Y GILT and 10Y Deutsche Bundus yields got dramatically lower by 30bps and 20bps, correspondingly, adding back today 3 and 7 bps. Today investor will have attention on inflation data in EU zone.

The NTB secondary market closed on a negative note with average yields rising by 2bps across the curve. Average yields across the long end rose by 5bps while average yields across the short & medium ends of the curve, remained unchanged. Nov 9, 2023 saw some selling interest.

In the OMO secondary market, average yields closed flat with average yields across the curve, remaining unchanged.

The FGN bonds secondary market closed on a positive note with average yields across the curve dropped by 10bps. Average yields on the short, medium & long ends dropped by 15bps, 15bps & 5bps respectively. The Apr 2049 bond was the best performer.

A weak open for SSA as the upward trend seems to have lost some steam. Yesterday rally was met with some profit taking with NIGERIA (-.50) closing about 100pts off session high. ANGOLA (-.25) opens lower while GHANA seems somewhat flat. Brent heads for weekly loss as market looks for more signs of a strong recovery in fuel demand in China to offset looming slumps on other major economy.