Erik Erik Erik

Morning Brew July 12 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Risk off and strong USD dominate


 

Good Morning,

Tomorrow I will not be in the office and not updating the report.

The USD continues to gain, up a full point from yesterday looking at the USD Index – now near the 20 year high.

EURUSD is testing parity at 1.0015. GBPUSD broke below the 1.19 and hit a 2year low. USDJPY is trading at 137.45, Bitcoin falls below 20k again. Gold and Silver fall to 1729 and 18.90 Gold fell to a fresh nine-month low.

Indexes closed lower yesterday and continue the slide, the Dow ended down 0.52%, the S&P 1.15%, and the Nasdaq 2.26%, at the moment, they loose another 0.8%. That is also the case for the European Indexes. Twitter lost 11% and Tesla 6.5% . Volumes in Equities were about 25% below the average.

Today there is little on the economic agenda, only the German ZEW at 11 is of real interest.

The German IG Metall is demanding wages to rise by 8% given the high inflation while German Economy is struggling with the weak Euro and high inflation.

For next weeks ECB rate decision the sentiment has shifted to expect a hike of 0.3% with a probability of 85%, nevertheless EUR remains weak.

Crude Oil is down 2% on growth worries.

Watch for political news and comments to move markets today rather than economic data so sharp moves could come at any point in time.

Tomorrow the US CPI Will be the key event at 14:30, besides that, the UK GDP and the German CPI at 8:00 as well as the EU industrial production will be watched closely.

  • Tuesday 12 July: Tryg, DNB Bank, PepsiCo
  • Wednesday 13 July: Fastenal, Delta Air Lines
  • Thursday 14 July: Fast Retailing, Ericsson, SEB, EQT, JPMorgan Chase, Morgan Stanley, Cintas
  • Friday 15 July: Investor, Sandvik, EMS-Chemie, UnitedHealth, Wells Fargo, Charles Schwab, BlackRock, Citigroup, Progressive, US Bancorp, PNC Financial Services
  • Monday 18 July: Bank of America, IBM, Goldman Sachs, Nordea
  • Tuesday 19 July: Johnson & Johnson, Novartis, Lockheed Martin, Netflix, Atlas Copco, Volvo, Halliburton, Assa Abloy, Hasbro, Yara International
  • Wednesday 20 July: Tesla, Abbott Laboratories, ASML, CSX, Nidex, Biogen, Baker Hughes, Kone, Volvo Car, Aker, Dassault Aviation, United Airlines, ASM International, Alfa Laval
  • Thursday 21 July: Roche, Danaher, AT&T, Blackstone, SAP, Intuitive Surgical, ABB, Freeport-McMoRan, Kinder Morgan, Nucor, DR Horton, Nokia, Essity, Seagate Technology, MarketAxess
  • Friday 22 July: Verizon, NextEra Energy, American Express, Schlumberger, Twitter, Danske Bank, Norsk Hydro
  • Monday 25 July: NXP Semiconductors, Kuehne + Nagel, Philips, Ryanair
  • Tuesday 26 July: Alphabet, Visa, LVMH, Coca-Cola, McDonald’s, UPS, Texas Instruments, Raytheon Technologies, Unilever, Christian Dior, General Electric, UBS Group, General Motors, Archer-Daniels-Midland, Southern Copper, DSV, UniCredit
  • Wednesday 27 July: Microsoft, Meta, Bristol-Myers Squibb, Qualcomm, AMD, Equinor, GSK, ServiceNow, Rio Tinto, Mondelez, Boeing, Airbus, 3M, Kering, Humana, Mercedes-Benz, Ford Motor, Kraft Heinz, Shopify, BASF, Danone, Fanucm Enphase Energy, Spotify, Garmin
  • Thursday 28 July: Apple, Nestle, Pfizer, Merck, L’Oreal, Shell, Comcast, Intel, Linde, TotalEnergies, Sanofi, Honeywell, Anheuser-Busch InBev, Keyence, Volkswagen, Air Liquide, Schneider Electric, Banco Santander, Valero Energy, Stellantis, Neste, BAE Systems, Arcelor Mittal
  • Friday 29 July: Amazon, Exxon Mobil, P&G, Mastercard, Chevron, AbbVie, AstraZeneca, Sony, Caterpillar, Colgate-Palmolive, BNP Paribas, Twilio, Pinterest

Trade cautiously!

 

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.