DeepCap Thursday Outlook

China growth beats expectations while quantum stocks surge on tech optimism

DeepCap Thursday Outlook

The Day at a Glance

🎯 Theme: China growth beats expectations while quantum stocks surge on tech optimism
πŸ“Š Risk Mood: Constructive (VIX 18.17, -1.03%)
⏰ Key Event: CFTC commodity and currency positioning data releases
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Key Headlines

  1. BOJ to hike rates by June as war-fuelled inflation risks mount: Reuters poll
    Central bank policy positioning amid war-driven inflation risks and rate path expectations.
  2. Fed’s Hammack: Rates likely on hold ‘for a good while’ – CNBC
    Central bank policy outlook and rate-related market moves amid geopolitical backdrop.
  3. Asia markets trade higher as hopes for a U.S.-Iran deal rise
    Geopolitical developments affecting market sentiment and regional dynamics.

The Day Ahead

Yesterday’s Takeaway

China’s stronger-than-expected GDP growth overshadowed geopolitical noise, driving Asian markets higher on infrastructure spending momentum. The data signals resilience despite Iran war disruptions, but Cleveland Fed President Hammack’s hawkish hold stance keeps rate cut expectations in check. This divergence between growth optimism and monetary policy reality sets up a tension between risk-on sentiment and bond market caution heading into today’s session.

The Setup

The VIX’s slide to 18.17 (-1.03% daily, -13.64% weekly) reflects subdued fear despite ongoing geopolitical risks, suggesting markets are pricing out immediate escalation concerns. European money markets tell a different storyβ€”3-month Euribor spiked 1.82% to 2.24%, hitting 52-week highs, while German 10-year yields climbed to 3.05%. US 10-year yields eased slightly to 4.28%, but the euro-dollar cross held flat at 1.18, indicating currency markets remain neutral on Fed-ECB policy divergence.

Today’s Watch

The CFTC positioning data dump at 7:30 PM ET will reveal speculative flows across currencies and commodities after this week’s geopolitical volatility. Key focus on crude oil net longs (previous: 202.2K contracts) and dollar positioning, particularly EUR (-7.5K) and GBP (-56.4K) shorts, which could signal whether institutional money is betting on continued dollar strength or preparing for reversal. The quantum computing sector’s explosive gainsβ€”led by Xanadu’s 70% surgeβ€”alongside recreational vehicle sector carnage suggests rotation into speculative tech themes while cyclical consumer discretionary faces pressure. Watch for continuation or profit-taking in quantum names as institutional flows adjust.

Market Movers

πŸ“ˆ Top Gainers

  • Xanadu Quantum Technologies Lim β€” +69.79%
  • D-Wave Quantum Inc. β€” +22.63%
  • IonQ, Inc. β€” +20.95%
  • Maase Inc. β€” +17.44%
  • Quantum Computing Inc. β€” +15.91%
  • York Space Systems Inc. β€” +15.15%
  • NuScale Power Corporation β€” +14.24%
  • Tempus AI, Inc. β€” +13.89%

πŸ“‰ Top Losers

  • BRP Inc. β€” -35.08%
  • Polaris Inc. β€” -16.72%
  • Polibeli Group Ltd β€” -16.47%
  • SolarEdge Technologies, Inc. β€” -11.98%
  • Credicorp Ltd. β€” -11.49%
  • Intercorp Financial Services In β€” -11.03%
  • Patrick Industries, Inc. β€” -10.89%
  • Carrier Global Corporation β€” -9.45%

Key Events Today

No major economic events scheduled.

Fed Speak This Week

  • April 17 β€” Bundesbank Buch Speech
  • April 17 β€” ECB Buch Speech
  • April 17 β€” Fed Barkin Speech (Neutral)
  • April 17 β€” Fed Waller Speech (Hawk)

Macro Dashboard

Indicator Level Ξ” d/d Ξ” w/w 52W Range Signal
VIX 18.17 -1.03% -13.64% 18.17–30.61 πŸ“‰ Subdued
EUR/USD 1.18 0.0% β€” β€” Neutral
EURIBOR 3M 2.24% +1.82% +3.23% 2.08–2.24 πŸ“ˆ Sticky
US 10Y 4.28% -0.23% 0.0% 4.25–4.36 Neutral
DE 10Y 3.05% +0.99% +3.39% 2.95–3.1 Neutral

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πŸ“° Yesterday’s Headlines (6 themes)

Rates, Central Banks & Mortgages

Central bank policy positioning amid war-driven inflation risks and rate path expectations.

Rates, Central Banks & Mortgages

Central bank policy outlook and rate-related market moves amid geopolitical backdrop.

Trade & Diplomacy

Geopolitical developments affecting market sentiment and regional dynamics.

Macro: Labor, Consumers & Growth

Broad economic sentiment and war-related impacts on domestic economic conditions.

China/Asia Policy & Markets

Chinese economic performance and Asian market moves amid regional geopolitical tensions.

Other Market News

Additional headlines across various market themes.

Social Media Buzz

For your reading pleasure, not to be treated as advice of any sort.

This content is for informational purposes only and is not investment advice. Markets carry risk. Do your own research.