Morning Brew April 21 2022
Senior Relationship Manager
Due to an event there will be no Morning Brew tomorrow,
Markets remain calm and looking for clues. US Equities fell moderately but recover over night on decent earnings numbers and hopes inflation may have peaked. Our Strats team in Asia wrote a deeper article: https://www.home.saxo/content/articles/macro/inflation-stays-top-of-mind-for-investors-21042022
US 10 year yields fell to 2.85 and the USD Index to 100.38, EURUSD 1.0850, GBPUSD 1.3050 and Gold and Silver at 1952 and 25.06. oil rose 1.5% to 103.70 in the CL contract.
The IMF warned a slowdown in China would have global implications but China had room to maneuver.
For the US, a 50 BPS hike seems like a done deal for the FOMC meeting in two weeks, the probability is traded at 97%.
Tesla revenue was USD 18.8 billion in Q1, versus estimates of USD17.8 billion and EPS 3.22 vs 2.26, the stock had fallen 5% in regular trading but could make up the loss after hours.
Nestle beats expectations this morning with an organic sales growth of 7.6& vs 5% expected
Netflix closed 35% lower, Bill Ackman takes a 400 mio loss and exits the position with his fund.
European Inflation Data at 11 will be of importance today, the annual HICP rate is expected at 7.5% and may indicate more pressure on the ECB to take action against inflation.-
- Thursday: American Airlines, Snap, AT&T
- Friday: Amex, Verizon, SAP, Schlumberger
- Thursday: EU HICP at 11, US Labor Data at 14:30
- Friday: UK CPI at 8:00, International PMI
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.