Senior Relationship Manager
Summary: Markets a little nervous with the FOMC and Omicron
Good morning,
Risk off sentiment dominated the equities & crypto markets yesterday with rate sensitive stocks and leisure at their worst. The Dow Jones and the S&P 500 lost 0.9%, the Nasdaq 1.4.
Elon Musk is Times Magazines person of the year, this strongly reminds when it was Jeff Bezos, just before the dotcom bubble burst. Tesla lost near 5% to close below 1000 USD per share. Nvidia lost 6.7% to close at 281. Apple fell 2.1%, missing the 3 trillion in Market cap.
Over night, stocks stabilize by app 0.1%, the Dax Future is trading at 15620 remaining trapped in the 15470 – 15880 range. German wholesale prices rose by 16.6% on the year in November.
The FX markets were fairly quiet, the USD Index could rise to 96.40, EURUSD little changed at 1.1275 and GBPUSD lower near 1.3200 as the UK reported the first deceased from the Omicron strain and is worrying about new measures. US Yields fall to 1.4260, more towards the lower end of the trading range.
Crypto came under pressure again yesterday with Bitcoin falling to 46550 and Ethereum losing more than 10% to trade at 3700.
Gold and silver moved little with Gold at 1787 and Silver at 22.25.
Swiss online bank, Swissquote, is reportedly launching its own cryptocurrency trading platform.
UBS got away lighter in an appeals court, the bank will pay less than half of the initial sentence.
The Turkish Lira showed high degrees of volatility again as it rose to above 14.60 before the national bank intervened and USDTRY fell to 13.64, currently 14.05.
The Australian biopharmaceutical company CSL Ltd intends to buy Swiss Vifor Pharma AG for $11.7 billion
Key Data Today: UK Employment date at 8:00 CET, EU industrial Production at 11:00, US PPI at 14:3 are the key events today but the focus will be on the FOMC
Trade safely
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.