DeepCap Thursday Outlook

Asian markets rally on ceasefire optimism while mortgage rates drive US housing revival

DeepCap Thursday Outlook

The Day at a Glance

🎯 Theme: Asian markets rally on ceasefire optimism while mortgage rates drive US housing revival
📊 Risk Mood: Constructive (VIX 18.92, -2.97%)
Key Event: Tokyo Core CPI data release
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Key Headlines

  1. Bank of Japan seen dropping hawkish signs even as it keeps rates steady
    Central bank policy decisions and rate impacts on housing and consumers.
  2. Kevin Warsh Pitched a Case for Fed Rate Cuts. His Future Colleagues Are Skeptical.
    Fed policy discussions and rate-sensitive housing sector impacts.
  3. Mexico ‘shouldn’t be nostalgic’ about zero-tariff era, economy minister says
    Trade policy shifts and bilateral economic relationships.

The Day Ahead

Yesterday’s Takeaway

Middle East ceasefire extension drove risk-on flows across global markets, with Asian equities hitting fresh records and volatility retreating. The VIX dropped 2.97% to 18.92, signaling reduced fear premium as geopolitical tensions ease. However, mortgage rates sliding again sparked housing market optimism while Trump’s Fed pick Kevin Warsh telegraphed his monetary policy approach, creating cross-currents for rate-sensitive assets heading into today’s session.

The Setup

Bond markets present a mixed picture with US 10-year yields climbing 0.46% to 4.33% near 52-week highs, while European rates show divergence as German 10-year yields rose more modestly to 3.01%. The dollar held steady against the euro at 1.17, but underlying positioning data tonight could reveal whether this calm masks building tensions. EURIBOR’s 0.91% decline suggests European rate cut expectations remain intact, creating a policy divergence trade worth monitoring.

Today’s Watch

Tonight’s CFTC positioning data at 7:30 PM ET will reveal speculative flows across major currencies and commodities, with particular focus on natural gas (-186.9K previous) and precious metals positioning. Tokyo Core inflation data overnight will provide the first major economic signal, though no forecasts are available. The real catalyst may emerge from continued Middle East developments and any Fed communication following Warsh’s recent signals about his approach to monetary policy. Cross-asset flows favor risk assets, but bond market pressure could test equity resilience.

Market Movers

📈 Top Gainers

  • Xanadu Quantum Technologies Lim — +51.75%
  • Navitas Semiconductor Corporati — +20.48%
  • Lightwave Logic, Inc. — +17.43%
  • NuScale Power Corporation — +16.28%
  • AXT Inc — +15.97%
  • Monarch Casino & Resort, Inc. — +15.89%
  • Fermi Inc. — +15.81%
  • Redwire Corporation — +15.71%

📉 Top Losers

  • Avis Budget Group, Inc. — -37.82%
  • Sportradar Group AG — -22.57%
  • NextNav Inc. — -22.15%
  • Sonoco Products Company — -16.22%
  • Calix, Inc — -13.98%
  • Travel Leisure Co. — -13.62%
  • TE Connectivity plc — -9.1%
  • EquipmentShare.com Inc — -8.32%

Key Events Today

Date Region Event Impact
Fri 04/24 CA Retail Sales 🔸 Med
Fri 04/24 CA Retail Sales 🔸 Med
Fri 04/24 CA Retail Sales Ex Autos 🔸 Med
Fri 04/24 CA Retail Sales 🔸 Med
Fri 04/24 CA Retail Sales 🔸 Med

Fed Speak This Week

  • April 24 — CBR Press Conference

Macro Dashboard

Indicator Level Δ d/d Δ w/w 52W Range Signal
VIX 18.92 -2.97% +4.13% 17.48–25.78 📉 Subdued
EUR/USD 1.17 0.0% Neutral
EURIBOR 3M 2.17% -0.91% -3.13% 2.15–2.24 Neutral
US 10Y 4.33% +0.46% +0.23% 4.25–4.34 📈 Bid
DE 10Y 3.01% +0.33% -1.31% 2.95–3.1 Neutral

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📰 Yesterday’s Headlines (6 themes)

Rates, Central Banks & Mortgages

Central bank policy decisions and rate impacts on housing and consumers.

Rates, Central Banks & Mortgages

Fed policy discussions and rate-sensitive housing sector impacts.

Trade & Diplomacy

Trade policy shifts and bilateral economic relationships.

  • Mexico ‘shouldn’t be nostalgic’ about zero-tariff era, economy minister says — Reuters

Macro: Labor, Consumers & Growth

Regional economic performance and structural economic challenges amid geopolitical stress.

Macro: Labor, Consumers & Growth

Economic growth data and regional economic performance indicators.

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.