Senior Relationship Manager
Summary: Traders Careful Ahead of Key Releases
Good Morning,
Nervousness is hitting markets as we are entering the key phase. From today there is a massive event risk from earnings, fundamental economic data and rate decisions as well as outlooks by central banks. Today we are expecting Exxon, UPS, General Motors Co and Caterpillar before market open and Pfizer, McDonalds, Spotify, AMD, Snap, Amgen, EA, after the close.
Yesterday the Dow lost 0.7%, the S&P 500 1.36% and the Nasdaq 2% with Tesla and Nvidia large losers after Fridays gains goth shedding 5%, Apple Amazon and Alphabet lose app 2%.
10 Year US rates climb to 3.55 and the USD Index gains to 102.30. EURUSD receded to 1.0840, GBPUSD to 1.2345 and USDJPY gains to 130.20. Gold falls to 1914 and is just abocve support at 1910, Silver is trading at 23.45.
Oil prices extended losses interest rate increases and continued Russian crude flows cancelled out demand recovery expectations from China. acc. to Reuters.
Consider very carefully how much risk you want to carry into the remainder of the week, consider options for directional bets and as yield enhancement given the high volatility. 25 Delta Tesla calls are trading at 75% implied Volatility for Late Feb/ March.
As a surprise, Australian Retail sales fell more than expected at -3.9% vs -0.3% expected. In terms of economic data we are expecting the EU and Canadian GDP at 11:00 and 14:30, at 16:00 the US Consumer confidence.
Trade safely.
Economic Data & Earnings
Tuesday
Japan Unemployment Rate, Australia Retail sales and China Manufacturing PMI
France, Italy as well as EU GDP, German CPI, US consumer confidence.
Earnings: Exxon, UPS, GM, Pfizer, Caterpillar, McDonalds, Spotify, AMD, Snap, Amgen, EA,
Wednesday
International PMI thorough the day, EU HICP
FOMC Rate decision
Earnings: Altria, T-Mobile, Peleton, ThermoFischer, Meta,
Thursday
Band Of England, ECB Rate decision
Earnings: Merck, Lilly, Honeywell, Sony, Amazon, Apple, Alphabet, Ford, Qualcomm, Starbucks, Gilead,
Friday
International PMI, Nonfarm Payroll
Earnings: Cigna, CBoe, Sanofi
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