Senior Relationship Manager
Summary: Equities as well as the USD Strong
Good Morning,
Equities as well as the USD both had a strong day yesterday, the Dow gained 0.61%, the S&P 1.10%, and the Nasdaq 1.76% and the Nasdaq 100 closed above its 200-day moving average for the first time since March last year
Tesla gained 11% on the better than expected earnings and Chevron 4.5% on the buy back program. Major Losers were IBM, down 4.5% on disappointing news and Bed Bath & Beyond collapsing 22% on o defaulting on debt.
US Yields rose to 3.55, giving the Dollar some strength and causing Gold, Silver, EURUSD GBPUSD from breaking resistances.
The US GDP as well as Durable goods in the US came higher than expected and the Japanese CPI came higher than expected. Today we are expecting the US Consumption data at 14:30 and the University of Michigan Consumer confidence at 1600 as the key data points.
The weekly closes will be rather interesting from a technical view so todays data will be rather significant.
Fundamentally the Fed is on the 2 and done course as our Steen Jakobsen points out, meaning there will be two hikes by the Fed and then a pause to assess the economic situation. Any change in that expectation will have a significant impact. Next week three key central banks will set rates, the Fed on Wednesday, the Bank of England and the European Central Bank on Thursday.
The earnings season will continue next week, so far 69% of companies have beat expectations.
Economic Data & Earnings
Friday
EU Money Supply
U PCE, Consumption and Confidence
Earnings: American Express Co Chevron Corp
Expiries
Physically Settled Futures
NGG3 will expire 26 Jan 2023
TTFMG3 will expire 27 Jan 2023
GCG3 will expire 30 Jan 2023
MGCG3 will expire 30 Jan 2023
Expiring CFDs
GASOLINEUSFEB23 will expire 27 Jan 2023
GOLDFEB23 will expire 27 Jan 2023
HEATINGOILFEB23 will expire 27 Jan 2023
CHINA50JAN23 will expire 30 Jan 2023
HK50JAN23 will expire 30 Jan 2023
TAIWAN95JAN23 will expire 30 Jan 2023
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