Morning Brew December 10 2021
Senior Relationship Manager
Summary: Markets in Limbo ahead ud US CPI
Markets are in Limbo ahead of the key US Inflation data at 14:30 CET today. Expected at 6.8% the number will give an idea of the Feds action next week. The expectations are for faster tapering and hints at earlier rate hikes. As Japan just released a record 9.0% wholesale inflation in November, we could see a higher-than feared number in the US.
Rate sensitive equities were under pressure yesterday, the Nasdaq fell 1.7%, the Dow was unchanged and the S&P500 in the middle at -0.71. The USD Index and rates moved little but precious metals traded under pressure. Silver fell below the 22.00 support, Gold is trading above support at 1772.
The Dax has retreated to mid range at 15530 after German Inflation data case exactly as expected with the annual CPI at 5.2%
Bitcoin hovers below 50k at 48.000 and oil fairly stable at 70.7 USD.
Besides the US CPI the University of Michigan survey at 16:00 CET could be of interest.
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.