Morning Brew December 14 2021
Senior Relationship Manager
Summary: Markets a little nervous with the FOMC and Omicron
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
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.