Morning Brew December 2 2021
Senior Relationship Manager
Summary: Markets looking for direction before key day tomorrow.
The Omicron variant has arrived in the US and keeping overall nervousness on a high level but stocks recover after strong losses yesterday. US Indexes closed it the red with the Dow -1.34%, the S&P -1.18%, and the Nasdaq -2.83%, over night we see a recovery of app 0.7% in the US indexes. Tesla and Meta both lost more than 4% yesterday, Nvidia 3.8%,
Dax is trading at 15350 and the Eurostoxx 50 at 4140.
The USD Index is at 96, EURUSD at 1.1320, GBPUSD at 1.3290, and Bitcoin around 57k. Gold remains near 1780 while silver fell below support at 22.50, hitting a low at 22.18 to recover back to 22.45.
Next to corona, the US Central bank remains in focus as Jerome Powell said the FED needs to be ready if inflation turns out to be less transitory than expected and does not recede in the 2nd half of 2022.
Against hopes there is not yet an agreement in place to raise the debt ceiling in the US and the deadline is tomorrow at Midnight in Washington.
The Turkish Lira remains “interesting” with a range from 12.40 to 13.80 yesterday.
Todays agenda is quite thin with tomorrow bringing the EU PMI and the Nonfarm Payroll, Tomorrow could be a very interesting day.
We have a good number of expiries coming up in CFD and Futures:
Physically Settled Futures:
EBMZ1 will expire 2nd December 2021 at 10:00 GMT
LEZ1 will expire 3rd December 2021 at 16:00 GMT
CZ1 will expire 6th December 2021 at 10:00 GMT
LIVECATTLEDEC21 will expire 2nd December 2021 at 16:00 GMT
Latest Market Insights
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.