Morning Brew February 14 2022
Senior Relationship Manager
Summary: Markets Nervous on Ukraine
Coming back from a week of skiing markets certainly look interesting. As of late Friday, where the US warned of an imminent Russian attack and Indexes dropped sharply. The Dow lost -1.43%, the S&P 500 -1.90% and the Nasdaq -2.78%. Nvidia, Amazon, Apple and Microsoft were the biggest weights on the S&P 500. The Dax Future is 1.7% below the Friday Dax close at 17:30 and the biggest loser of the day, delivery Hero remains under pressure and should open at app.40.
The US Dollar as well as Gold and Silver jumped higher and US 10 Year Yields declined sharply to 1.95 after having risen to above 2%. The Bund Future gains almost 1% over the weekend. EURUSD fell to 1.1345 from above Gold closed the week above the upper line of the wedge formation is has been trading in, Silver rises to 23.60.
Oil hit the highest level in 7 years, Brent gains 1.2% and WTI 1.5%.
Bitcoin was under pressure along with the Nasdaq and did not function as safe haven in traders eyes. We are currently trading at 42k.
David Rosenthal, a co-founder of Nvidia posted a blog on Crypto assets that went viral on social media: https://blog.dshr.org/2022/02/ee380-talk.html
Today there is little on the economic agenda, all eyes will be on Ukraine and various efforts to calm the situation. There is a closed fed meeting in the US today and the rumor f a mid-point rate hike has been making the round, that would be a serious undertaking. Mary Daly discarded the need for an unscheduled rate hike yesterday.
Please remain cautious in your positioning as there can be sharp moves at any point in time given the tension in Ukraine.
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.