Erik Schafhauser Zürich

Morning Brew October 21 2021

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Good Morning,

The Dow Jones and Bitcoin hit new highs, German Inflation soars, Weidman resigns – Everything Bubble calls are getting louder again.

US 10 year yields are trading at 1.65 and the USD Index at 93.60, the Vix fell to a two month low on less risk aversion.

The EURUSD rose to 1.1650, GBPUSD rose above 1.38 Gold and Silver can rise to 1785 and 24.55. Gold has significant levels at 1800 and 1810 ahead of the important 1835. Silver needs to break above the 25 level.

The ProShares Bitcoin Strategy it has become the fastest fund ever to reach $1 billion in AUM and new shouts for 100k levels and even higher for this year are getting louder again for Bitcoin. As the BITO does not supply a so called Key information document it is not available for distribution to retail clients in Europe, there are other instruments to trade bitcoin available such as the BTCUSD or ABTC:xswx. Bitcoin traded at 67000 for the first time yesterday and is slightly below that level now.

Tesla beat results yesterday but failed to excite investors, the stock fell slightly in the aftermarket but only by 14 USD, IBM missed expectations and fell by 5% after hours.

Evergrande’s shares fell more than 10% after a real estate sale failed.

Barclays, Unilever and Jyske as well as Kühne and Nagel beat expectations today, ABB misses as supply chain issues hurst sales.

Jens Weidman, Head of the Bundesbank and strong hawk announces his resignation with effect at year end yesterday, that could be a dovish signal.

China indicated it may intervene to break the rise in coal prices sending futures loser, overall energy prices remain high and in a sign of market tightness, WTI futures contracts are currently in steep backwardation. Russia stated it`s storages were 97% full

 

Today the initial jobless claims out of the US, the Philly Fed Business Index, both at 14:30 CET and the EU Consumer confidence will be important releases, it will be interesting if Inflation is starting to weigh on the sentiment in the EU. Key company results are Intel and AT&T

Safe trading!

 

 

Quarterly Outlook

01 /

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

Content disclaimer

None of the information provided on this website constitutes an offer, solicitation, or endorsement to buy or sell any financial instrument, nor is it financial, investment, or trading advice. Saxo Bank A/S and its entities within the Saxo Bank Group provide execution-only services, with all trades and investments based on self-directed decisions. Analysis, research, and educational content is for informational purposes only and should not be considered advice nor a recommendation.

Saxo’s content may reflect the personal views of the author, which are subject to change without notice. Mentions of specific financial products are for illustrative purposes only and may serve to clarify financial literacy topics. Content classified as investment research is marketing material and does not meet legal requirements for independent research.

Before making any investment decisions, you should assess your own financial situation, needs, and objectives, and consider seeking independent professional advice. Saxo does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

All trading and investing comes with risk, including but not limited to the potential to lose your entire invested amount.

Information on our international website (as selected from the globe drop-down) can be accessed worldwide and relates to Saxo Bank A/S as the parent company of the Saxo Bank Group. Any mention of the Saxo Bank Group refers to the overall organisation, including subsidiaries and branches under Saxo Bank A/S. Client agreements are made with the relevant Saxo entity based on your country of residence and are governed by the applicable laws of that entity's jurisdiction.

Apple and the Apple logo are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.