Morning Brew June 21 2023

Good Morning,

Markets are a bit mixed ahead of Powell’s testimony and the 4 central bank announcements tomorrow.

The main Indexes dropped a little with the Dow the largest loser at 0.7% with energy being the largest detractor on demand fears. A very high housing start number added confusion to sentiment at 1.6 mio against an expectation of 1.4 mio. – The number hit precious metals particularly hard and sent gold to 1935 and Silver to 23.10.

The USD Index remains near 102.5 and 2 year US rates are at 4.7%, EURUSD is 1.0910, GBPUSD 1.2780 after higher than expected CPI this morning, the core came at 7.1% vs 6.8% expected.

Tesla and Rivan were among the most interesting stocks yesterday, both up more than 5% after Rivan said it would employ the Tesla charging standard.

The US Chinese relations are in the spotlights again as just a day after the agreement to stabilize the relationship, Biden called Chinese president Xi Jinping a dictator.

Today, all eyes will be on the testimony of Jerome Powell beginning at arround 16:00 and possible guidance, there will be some nervousness ahead of the 4 central banks coming up tomorrow.

• The Swiss National Bank with 55% in favor of 50 basis point hike and 45% for 25 basis pointsat 9:30
• The Norwegian Central Bank is expected to hike 25 BPS at 10:00 CET
• BOE: 75% for a 25 BPS hike, 25% in favor of 50 basis points at 13:00
• Turkish Central Bank at 13:00

Wednesday June 21

UK CPI
CA Retail Sales

Jerome Powell speaks in the House

Thursday June 22

Swiss Rate decision
UK Rate decision
US Jobless Data, Existing Home sales
Jerome Powell speaks in the Senate

Earnings: Accenture PLC, FactSet

Friday June 23

Japan CPI, PMI
UK Retail Sales
DE, NL PMI
EU PMI
US PMI

Earnings: Oracle