Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew July 27 2021

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Risk on on apparent calming in Ukraine


Good Morning,

Easing tensions in Ukraine – or at least the hope thereof – sparked risk on sentiment and weighed on safe haven demand.  The Dow gains 1.22% the S&P 1.58% and the Nasdaq 2.53%. Tech Stocks got fueled further by Intel`s takeover of Tower Semiconductor, Nvidia adds almost 10% ahead of the numbers today, Tesla more than 5% and apple more than 2%. Dax rose to 15433.

Gold and Silver lost and EURUSD gained while US 10 Year Yields rose to above 2.00 again. The USD Index fell to just below 96 and GBPUSD is trading at 1.3550 ahead of the UK CPI at 8:00 this morning, the expectation is for a 5.4% increase in prices. Gold is currently trading at 1854 so below the 1876 resistance again but well above the 1835 support. Silver fell to near 23,00 yesterday but made up half the losses to trade at  23.40 now. 

Oil briefly fell to below 91 before stabilizing to 92.20.

Positive signals out of Ukraine were apparent withdrawal of Russian troops and an apparent willingness on the Russian side to continue talks.

Shortly after the good news, Ukraine reported massive cyberattacks and the US pointed out that there are still large number of troops on the border.

Chinese Inflation came less high than feared, the PPI at 9.1% vs 9.5% expected and the CPI at 0.9% vs 1% expected.

Driver today will be any confirmation of a de-escalation in the Ukraine or rising tensions again. Is worth taking note that Equities remain near the top while commodities and Precious Metals have retreated from the extremes toward caution.

Please bear in mind that market moves are larger than normal, the daily swings in the Dax index are almost 50% above the average, please take that into consideration.

Key Data coming up:

Today  : UK CPI, US Retail sales, US  Industrial Production

17th Turkey Rate decision, US Jobl3ess Data and Phily Fed

18th UK Retail Sales, Eurozone Consumer Confidence

Earnings today are Shopify,Wix.com, Hilton, Kraft, AMC, Nvidia and Cisco.

 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.