Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew August 8 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Good Morning,

 

A higher than expected Payroll let worries of a 75 basis point hike increase, US Yields jumped higher across the board, strengthened the US and weighed on stocks. Over the weekend we are seeing some recovery. The USD Index traded as high as 106.93 on Friday and receded to 106.50 now. The 2 / 10 year spread in the US Yields hit 40 basis points.

EURUSD hit 1.0140and gained to 1.0185. GBPUSD 1.2003/ 1.2080 and USDJPY 135.50/135.30. Gold and Silver fell to 1765 and 19.55 before recovering to 1775 and 19.92.

Indexes fell moderately as the stronger than expected labor market and the rate fears offset one another. The S&P 500 declined 0.15%, the Dow Jones gained 0.23% and the Nasdaq declined by 0.5%.

The US Senate approved Bidens spending bill to the tune of USD 430 Billion, a major democratic win.

Tensions around Taiwan remain high as China extends it`s military drills and Taiwan also announced military exercises while in Ukraine fighting around the  Zaporizhzhia Nuclear Power plant continues as major causes for concern.

Chinese trade data came high than expected yesterday with exports up 18% vs 15 expected.

Moody's had cut Italy's outlook to negative after the resignation of Mario Draghi

 SoftBank posted a loss of USD 23.37 billion in the first Japanese Quarter form April to June.

This week starts with little economic data of high significance, the US productivity data tomorrow and the Chinese , German and US Inflation data on Wednesday will be watched carefully for hints on the path of the central banks.

Trade safely

Key Earnings:

  • Monday: Barrick Gold, Siemens Energy, Nippon Telegraph & Telephone, SoftBank Group, Tokyo Electron, Dominion Energy, BioNTech, AIG, Tyson Foods, Palantir Technologies, Take-Two Interactive
  • Tuesday: Alcon, Globalfoundries, Roblox, Trade Desk, Coinbase Global, Akamai Technologies, Plug Power, Unity
  • Wednesday: Commonwealth Bank of Australia, Vestas Wind SystemsGenmab, E.ON, Honda Motor, Prudential, Aviva, Walt Disney, Coupang, Illumina
  • Thursday: KBC Group, Brookfield Asset Management, Orsted, Novozymes, Siemens, Hapag-Lloyd, RWE, China Mobile, Antofagasta, Zurich Insurance Group, NIO, Rivian Automotive
  • Friday: Flutter Entertainment, Baidu

Expiries

  •         Physically Settled Futures:
  • Low Sulphur Gasoil (FPQ2) will expire 10th Aug at 15:00 GMT
  • Lean Hogs (HEQ2) will expire 12th Aug at 17:00 GMT

     

  • Expiring CFDs:
  • GASOILUKAUG22 will expire 9th Aug at 15:00 GMT
  • LEANHOGSAUG22 will expire 10th Aug at 15:00 GMT

 

 

 

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • 350x200 peter

    Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • 350x200 althea

    Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • 350x200 peter

    Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • 350x200 charu (1)

    FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • 350x200 ole

    Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)

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

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

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