Senior Relationship Manager
Summary: Markets mixed on US Holiday
Good Morning
Please remember that US Markets are closed due to Martin Luther King day, this may help traders find some direction after the mixed session last Friday.
JPMorgan, Citi and Blackrock disappointed and their stocks fell by 6%, 1.3% and 2.2%. Wells Fargo can gain 3.7% after a positive surprise. And Indexes closed mixed. The Dow falls 0.56%, the S&P rises 0.08%, and the Nasdaq up 0.59%. Big Tech had a decent day, gaining near 1.5%. The University of Michigan Confidence came lower than expected.
Over night Chinas Retail Sales Disappointed at 1.7% vs 3.7% and Industrial output came better at 4.3% vs 3.6% and the central bank cut medium term lending rates.
Energy prices are becoming more of a subject with crude oil trading at the long term resistance. If Brent breaches the 86, there is significant upside potential.
The USD Index rebounds to 95.20 and the US 10 Year Yield is back at 1.77%, EURUSD fell to 1.1400 and GBPUSD 1.3670, Gold 1818 and Silver near 23.00. EURCHF is again in uncomfortable territory at 1.0440
Turkey attempted to verbally stabilize the TRY and briefly succeeded to reach 13.16 before we rose back to 13.55.
Corona-rule violations were in focus over the weekend with Credit Suisse Chairman Antonio Horta-Osorio resigning due to his conduct and Novak Djokovic has had his Australian visa cancelled by immigration minister Alex Hawke "on health and good order grounds"
This week will be driven by earnings including Goldman Sachs, Alcoa, Morgan Stanley, American Airlines, Netflix and Schlumberger starting tomorrow.
Key economic events are
Tomorrow:
German ZEW, Canada CPI, Japan Rate Decision
Wednesday: German and UK CPI
Thursday: Japan Trade Balance EU CPI, Turkey Rate decision
Friday UK Retail Sales and EU Consumer Confidence
Trade safely.
The end of the road
Emboldened by surging crude oil prices, Saudi Arabia makes waves on the international stage, as Crown Prince Mohammed bin Salman manages to create a World Champions League, after buying the UEFA Champion League franchise.
As the world embraces GLP-1 obesity wonder drugs, the people next in line to get a prescription stop caring about dieting and exercising, figuring that the drug will later solve all of their weight-related health problems.
With the US budget deficit spiraling above 10% of the GDP, the government is desperate to foster demand for US Treasuries. Under intense pressure from the White House, Congress makes income from government bonds tax-free.
After a criminal group deploys the most deceptive AI deepfake ever seen, generative AI becomes a national security threat. With public distrust soaring, governments crack down with harsh new laws, puncturing the AI hype.
To fix the divergence in the global trade and financial system, the largest deficit countries unite to negotiate new world trade terms. For surplus countries, the reset of the global economic model is a painful adjustment.
As discontent with Biden and Trump rises to fever pitch, Robert F. Kennedy Jr sees his support rising inexorably in the polls. On November 5, Kennedy wins the US presidential election, ushering in a new era in US politics.
Stepping up Japan's economic transformation in 2024, PM Kishida brings in a host of populist policies to boost domestic demand. As the GDP growth rate hits 7%, the BoJ is forced to abandons its yield curve control policy.
As people wake up to how little tax Europe’s billionaires are actually paying, the EU Commission implements a wealth tax of 2%. The tax sends shockwaves through Europe's luxury industry, with luxury giant LVMH plunging 40%.