Senior Relationship Manager
Good Morning,
The Fed hiked by 50 Basis points as expected but the 23 outlook was somewhat more hawkish suggesting rates near 5,1%. Fed Chairman Powell said it was not yet the time talk about rate cuts as the focus was still to push inflation down to 2%. While the market seems not to fully buy into that narrative, equities gave up some ground, the Dow closed down 0.42%, the S&P 500 0.61%, and the Nasdaq down 0.76%.
10 year rates jumped higher briefly but fell back to 3.47 and the USD Index fell back to 103.80. EURUSD is trading at 1.0650, Cable 1.2390 and USDJPY 135.65. Gold and Silver came under pressure and fell to 1792 and 23.25, Silver is down more than 2.5% on the day. . This was likely aided by disappointing Chinese data, industrial output grew only by 2.2% vs 3.6% expected and retail sales at a terrible -5.9% vs -3.7% expected.
The SEC in the US decided on new trading rules for stock trading including requiring retail stock orders to be sent to auctions before they are executed
Elon Musk sold further 22 mio shares in Tesla, totaling his sales near 40 bio.
Over the next days we have loads of expiries, pls check if you are affected and roll where necessary.
Todays Key events are :
Swiss National Bank at 9:00 hike by 50 BPS expected with 79%
Norwegian Central Bank at 10:00 hike by 25 BPS expected
Bank of England at 12:30 hike by 50 BPS expected with 75%
European Central Bank at 14:15 hike by 50 BPS expected with 78%
US Retail Sales 14:30 expected at -0.1%
Press conference by C. Lagarde at 14:45
Tomorrow we are expecting the UK Retail Sales, International PMI
Trade safely.
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy