DeepCap Friday Outlook

Markets extend gains as geopolitical tensions ease, VIX drops below 20

DeepCap Friday Outlook

The Day at a Glance

🎯 Theme: Markets extend gains as geopolitical tensions ease, VIX drops below 20
πŸ“Š Risk Mood: Constructive (VIX 19.49, -7.37%)
⏰ Key Event: Gross Domestic Product release
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Key Headlines

  1. Bank of Korea Keeps Rates Unchanged as Mideast Uncertainty Persists
    Central bank policy decisions and Fed rate expectations amid geopolitical uncertainty.
  2. Jamie Dimon Warns of Higher Inflation, Interest Rates From Iran War
    Rate outlook and monetary policy implications from geopolitical tensions.
  3. White House Warned Staff Not to Engage in Insider Trading Amid War With Iran
    Headlines centered on US-Iran conflict, ceasefire dynamics, and geopolitical market implications.

The Day Ahead

Yesterday’s Takeaway

Markets shrugged off Middle East tensions as the S&P 500 extended its longest winning streak since October, despite oil climbing on Strait of Hormuz closure fears. The disconnect signals risk assets are pricing in contained regional conflict while energy markets hedge against supply disruption. This divergence sets up today’s session for either validation of equity resilience or a reality check if geopolitical risks escalate.

The Setup

The VIX plunged 7.37% to 19.49β€”hitting its 52-week lowβ€”while US 10-year yields rose modestly to 4.30%. This combination of subdued volatility and steady borrowing costs suggests markets remain sanguine about both geopolitical and monetary policy risks. European yields climbed more aggressively, with German 10-year bunds up 1.36% to 2.99%, potentially reflecting ECB policy uncertainty. The dollar held steady against the euro at 1.17, indicating currency markets aren’t pricing significant flight-to-safety flows despite regional tensions.

Today’s Watch

New Zealand’s Services PSI at 10:30 PM ET offers the session’s key data point, with consensus expecting a rebound to 50.6 from March’s contractionary 48.0 reading. A miss could amplify RBNZ dovish bets and weigh on risk sentiment given antipodean currencies’ correlation with global growth expectations. Meanwhile, CFTC positioning data releases later will reveal whether last week’s equity rally coincided with fresh long positioning or short covering. Focus remains on whether yesterday’s geopolitical resilience holds or cracks under fresh headlines from the Middle East.

Market Movers

πŸ“ˆ Top Gainers

  • Eos Energy Enterprises, Inc. β€” +29.63%
  • York Space Systems Inc. β€” +28.84%
  • AXT Inc β€” +18.69%
  • Avis Budget Group, Inc. β€” +13.67%
  • Brown Forman Inc β€” +12.89%
  • Brown Forman Inc β€” +11.44%
  • Galaxy Digital Inc. β€” +11.32%
  • Ocular Therapeutix, Inc. β€” +10.45%

πŸ“‰ Top Losers

  • Texas Pacific Land Corporation β€” -15.68%
  • Qualys, Inc. β€” -12.23%
  • Snowflake Inc. β€” -11.83%
  • Zscaler, Inc. β€” -11.33%
  • Okta, Inc. β€” -10.89%
  • SailPoint, Inc. β€” -10.88%
  • Rubrik, Inc. β€” -10.56%
  • BillionToOne, Inc. β€” -10.31%

Key Events Today

Date Region Event Impact
Fri 04/10 US CPI s.a πŸ”΄ High
Fri 04/10 US Core CPI πŸ”΄ High

Macro Dashboard

Indicator Level Ξ” d/d Ξ” w/w 52W Range Signal
VIX 19.49 -7.37% -18.35% 19.49–31.05 πŸ“‰ Subdued
EUR/USD 1.17 0.0% β€” β€” Neutral
EURIBOR 3M 2.16% -0.46% +1.89% 2.08–2.18 Neutral
US 10Y 4.3% +0.47% -0.46% 4.28–4.44 πŸ“‰ Offered
DE 10Y 2.99% +1.36% -0.33% 2.95–3.1 Neutral

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πŸ“° Yesterday’s Headlines (6 themes)

Rates, Central Banks & Mortgages

Central bank policy decisions and Fed rate expectations amid geopolitical uncertainty.

Rates, Central Banks & Mortgages

Rate outlook and monetary policy implications from geopolitical tensions.

Trade & Diplomacy

Headlines centered on US-Iran conflict, ceasefire dynamics, and geopolitical market implications.

Macro: Labor, Consumers & Growth

Economic growth data and demographic trends affecting long-term economic outlook.

Macro: Labor, Consumers & Growth

Economic growth concerns and demographic trends affecting long-term outlook.

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.