SPX Gamma Wrap
Quick update: The SPX closed 1.6 percent higher, mainly driven by the growth complex (+1.9%), even though 10 year yields climbed five basis points higher to 2.94 percent.
Supportive factors were surprisingly good data points from the housing market, and less hawkish commentary from Evans and Bostic compared to Bullards comments yesterday.
Still - future markets are now again pricing in a rate of about 2.48 percent for the end of the year (see chart below), which is higher than yesterday's 2.36 percent, but markets don't seem to care for now.
https://www.tradingview.com/x/LnDMLgSF/
Some rumors were making the rounds, that France will push the EU to impose an oil embargo on Russia after the election, which - according to JPMorgan could send the the price for a barrel all the way up to 185 dollar, but again markets turned a blind eye.
Maybe the energy market is betting on a scenario, in which Germany will refuse to comply with the demands given that the country could not afford such a step in the near future, and is not willing to give up his relatively neutral stance towards Russia.
Dealer gamma improved by 417MM to -111MM, while the market was able to gain a foothold well above the 50-day moving average, which could bring in more buyers, especially if the gamma inversion level at 4480 can be reclaimed in the coming days.
Supportive factors were surprisingly good data points from the housing market, and less hawkish commentary from Evans and Bostic compared to Bullards comments yesterday.
Still - future markets are now again pricing in a rate of about 2.48 percent for the end of the year (see chart below), which is higher than yesterday's 2.36 percent, but markets don't seem to care for now.
https://www.tradingview.com/x/LnDMLgSF/
Some rumors were making the rounds, that France will push the EU to impose an oil embargo on Russia after the election, which - according to JPMorgan could send the the price for a barrel all the way up to 185 dollar, but again markets turned a blind eye.
Maybe the energy market is betting on a scenario, in which Germany will refuse to comply with the demands given that the country could not afford such a step in the near future, and is not willing to give up his relatively neutral stance towards Russia.
Dealer gamma improved by 417MM to -111MM, while the market was able to gain a foothold well above the 50-day moving average, which could bring in more buyers, especially if the gamma inversion level at 4480 can be reclaimed in the coming days.
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