Erik Schafhauser Zürich

Morning BrewAugust 06 2021

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Everything Bubble


Good Morning

Howard Marks stated in an interview yesterday that we were in “an everything Bubble” and that the Fed should not be concerned with market management. The same day, the Nasdaq and the S&P500 close at record levels on fairly low volume. Over the last 20 days the average traded volume of shares in the US was 9.3 Bio, yesterday only 8.8 exchanged hands. The Stoxx 600 Index also trades at an all time high and the Dax is approaching record levels as well.

Robinhood Markets fell 27.6% ViacomCBS Inc gained  7.1% Allianz posted a 46% rise increase in profits.

The USD Index rises to 92.33, EURUSD falls to 1.1825 GBPUSD trades at 1.3919 and gold and silver 1800 and 25.15. US 10 year yields rose to 1.2369% while the whole German Yield curve is negative. The 30 year is at -0.05%. Bitcoin trades above 40k and Ether rises 10%

Key event will be the US Non-Farm Payrolls expected at 870k along with the unemployment rate at 5.7%. For the Swissi, the Forex reserves of the SNB will be released at 9 CET, last month was 941 billion CHF.

Key driver of the stock market remains asset purchases by central banks, if the NFP Data shows further recovery, it will be difficult to maintain the justification for QE, unless the Delta variant could be constructed as a reason.

Trade safely.

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

Unit

6 Aug 2021

05:00

New Zealand

Reserve Assets Total

Jul

NZD

6 Aug 2021

08:00

Germany

Industrial Output MM

Jun

0.5%

Percent

6 Aug 2021

08:00

United Kingdom

Halifax House Prices MM

Jul

Percent

6 Aug 2021

08:00

Norway

Reserve Assets Total

Jul

NOK

6 Aug 2021

08:45

France

Reserve Assets Total

Jul

EUR

6 Aug 2021

09:00

Switzerland

Forex Reserves CHF

Jul

CHF

6 Aug 2021

14:30

United States

Non-Farm Payrolls

Jul

870k

Person

6 Aug 2021

14:30

United States

Unemployment Rate

Jul

5.7%

Percent

6 Aug 2021

14:30

United States

Average Earnings YY

Jul

3.9%

Percent

6 Aug 2021

14:30

Canada

Employment Change

Jul

150.0k

Person

6 Aug 2021

14:30

Canada

Unemployment Rate

Jul

7.4%

Percent

7 Aug 2021

China (Mainland)

Exports YY

Jul

Percent

7 Aug 2021

China (Mainland)

Imports YY

Jul

Percent

7 Aug 2021

China (Mainland)

Trade Balance USD

Jul

USD

9 Aug 2021

03:30

China (Mainland)

PPI YY

Jul

Percent

9 Aug 2021

03:30

China (Mainland)

CPI YY

Jul

Percent

(Refinitiv)

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