Erik Schafhauser Zürich

Morning Brew August 13 2021

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Good Morning,

Equity Markets shrug off a higher PPI and seem to focus on growth. Producer Prices have not risen as fast n a decade. There were small gains in indexes on low volumes. Dax broke out of the range and neared 16000 before retreating to 15934 in the future.

The USD Initially gained after the PPI release then returned to yesterday’s levels. The USD Index is at 93, EURUSD 1.1738, GBPUSD 1.3811. Gold and Silver tested a break lower before rising again to 1755 and 23.25 again. Bitcoin trades at 45300

US 10 Year yields traded to 1.3750 before reverting to 1.3500.

In the coming week we are expecting the Japanese GDP, Chinas Industrial Output, EU GDP and US Retail Sales as the initial highlights. The narrative remains that as long as central banks inject liquidity, equities will have a hard time falling. Today the only events of note are US Import prices and the University of Michigan Sentiment at 14:30 and 16:00 CET respectively.

Based on a poll of economists , Reuters published that 65% of analysts expect the Fed to announce tapering at their September meeting. Most expect tapering to actually begin in Q1 22 and the asset purchase program to run out in 23.

In other news:

The Taliban capture Kandahar

Booster shots against Covid are approved in the US

Poly Network stated that most of the stolen USD 610 million in crypto currencies have been returned.

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

13 Aug 2021

08:45

France

CPI (EU Norm) Final MM

Jul

0.1%

13 Aug 2021

08:45

France

CPI (EU Norm) Final YY

Jul

1.6%

13 Aug 2021

09:00

Turkey

Current Account Balance

Jun

13 Aug 2021

09:30

Sweden

CPI MM

Jul

0.3%

13 Aug 2021

09:30

Sweden

CPI YY

Jul

1.4%

13 Aug 2021

16:00

United States

U Mich Sentiment Prelim

Aug

81.2

16 Aug 2021

01:50

Japan

GDP QQ

Q2

0.2%

16 Aug 2021

01:50

Japan

GDP QQ Annualised

Q2

0.7%

16 Aug 2021

01:50

Japan

GDP QQ Pvt Consmp Prelim

Q2

-0.1%

16 Aug 2021

01:50

Japan

GDP QQ Capital Expend.

Q2

1.7%

16 Aug 2021

01:50

Japan

GDP QQ External Demand

Q2

-0.1%

16 Aug 2021

04:00

China (Mainland)

Urban Investment (YTD)YY

Jul

16 Aug 2021

04:00

China (Mainland)

Industrial Output YY

Jul

16 Aug 2021

04:00

China (Mainland)

Retail Sales YY

Jul

16 Aug 2021

12:00

Euro Zone

Reserve Assets Total

Jul

(refinitv)

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