Base metals: Money in the sidelines – TDS
After the worst single day equity selloff since the financial crisis, markets are taking a breather, reaching limit up on the day as some losses are recovered across markets, analysts at TD Securities inform.
“President Trump's potential stimulus package, which could include payroll tax cuts and extended paid sick leave, did well to quell panic at least in the very near term.”
“On the virus front, President Xi's visit to Wuhan sends the message that China has the virus under control and is on the path to recovery.”
“With the rest-of-world contagion data becoming the marginal driver for base metals and commodity demand firmly in question, money managers have opted to rush for the sidelines.”
“As for CTAs, despite today's risk recovery negative momentum signals are still prevalent as funds remain comfortably short. In contrast, lead selling could be halted should prices close above $1834/t.”