Saxo Bank
Good Morning,
Markets are certainly in an interesting place ahead of the FOMC rate decision tonight. US and European Equities fell yesterday but stabilized over night on good earnings, Chinese stocks remain under pressure the yuan hit its lowest since April and Hong Kong slumped 5%.
China seems to want to end the growth at all cost model in favor of a broader based prosperity. This could be a paradigm shift for the near term future
Big tech in the US reported very good numbers yesterday but Apple warns that the IPhone production may be affected by supply chain issues.
EURUSD rose to 1.1820, the USD Index fell to 92.50, Silver broke lower yesterday but could recover to 24.80, Bitcoin broke above $40,000. Dax remains mid-range at 15530 based int eh Future.
Australia's consumer prices rose at the fastest annual pace in almost 13 year
Asian shares stayed stuck at seven-month lows on Wednesday
Norway's Equinor posted a sharp increase in second-quarter profit and Deutsche Bank beats estimates this morning.
Key today will be the FMC and the outlook on tapering. Neither a change in rates nor immediate tapering is expected any outlook on when the fed may discontinue or reduce its bond purchasing program will make or break the day. It seems, a start of tapering near year end is the general expectation, any hawkish – or dovish surprise could move the markets significantly.
Earnings today are :BASF, Banco Santander, GlaxoSmithKline, Ford, Facebook, Shopify, Pfizer, Boeing, McDonalds, Bristol.-Myers, CME
Local Date | Local Time | Country/Region | Indicator Name | Period | Reuters Poll |
28 Jul 2021 | 03:30 | Australia | CPI QQ | Q2 | 0.7% |
28 Jul 2021 | 03:30 | Australia | CPI YY | Q2 | 3.8% |
28 Jul 2021 | 03:30 | Australia | RBA Weightd Medn CPI QQ | Q2 | 0.5% |
28 Jul 2021 | 03:30 | Australia | RBA Weightd Medn CPI YY | Q2 | 1.7% |
28 Jul 2021 | 03:30 | Australia | RBA Trimmed Mean CPI QQ | Q2 | 0.5% |
28 Jul 2021 | 03:30 | Australia | RBA Trimmed Mean CPI YY | Q2 | 1.6% |
28 Jul 2021 | 14:30 | Canada | CPI BoC Core YY | Jun | |
28 Jul 2021 | 14:30 | Canada | CPI BoC Core MM | Jun | |
28 Jul 2021 | 20:00 | United States | Fed Funds Tgt Rate | 28 Jul | 0-0.25 |
28 Jul 2021 | 20:00 | United States | Fed Int On Excess Reserves | 28 Jul | |
29 Jul 2021 | 08:00 | United Kingdom | Nationwide house price mm | Jul | |
29 Jul 2021 | 08:00 | United Kingdom | Nationwide house price yy | Jul | |
29 Jul 2021 | 09:30 | Sweden | GDP QQ Prelim | Q2 | |
29 Jul 2021 | 09:30 | Sweden | GDP YY Prelim | Q2 | |
29 Jul 2021 | 09:55 | Germany | Unemployment Chg SA | Jul | |
29 Jul 2021 | 09:55 | Germany | Unemployment Rate SA | Jul | 5.8% |
29 Jul 2021 | 11:00 | Euro Zone | Consumer Confid. Final | Jul | |
29 Jul 2021 | 13:00 | Brazil | IGP-M Inflation Index | Jul | |
29 Jul 2021 | 14:00 | Germany | CPI Prelim YY | Jul | 3.2% |
29 Jul 2021 | 14:00 | Germany | HICP Prelim YY | Jul | 3.0% |
29 Jul 2021 | 14:30 | United States | GDP Advance | Q2 | 8.0% |
29 Jul 2021 | 14:30 | United States | Initial Jobless Clm | 19 Jul, w/e | |
30 Jul 2021 | 01:30 | Japan | Jobs/Applicants Ratio | Jun | 1.10 |
30 Jul 2021 | 01:30 | Japan | Unemployment Rate | Jun | 3.0% |
30 Jul 2021 | 01:50 | Japan | Industrial O/P Prelim MM SA | Jun | 5.0% |
30 Jul 2021 | 07:30 | France | GDP Preliminary QQ | Q2 | 0.8% |
30 Jul 2021 | 08:00 | Germany | GDP Flash QQ SA | Q2 | 2.1% |
30 Jul 2021 | 08:00 | Germany | GDP Flash YY NSA | Q2 | 10.0% |
30 Jul 2021 | 08:00 | Denmark | Unemployment Rate | Jun | |
30 Jul 2021 | 08:45 | France | CPI (EU Norm) Prelim YY | Jul | |
30 Jul 2021 | 09:00 | Spain | Estimated GDP QQ | Q2 | 2.1% |
30 Jul 2021 | 09:00 | Switzerland | KOF Indicator | Jul | |
30 Jul 2021 | 09:00 | Switzerland | Official Reserves Assets CHF | Jun | |
30 Jul 2021 | 09:00 | Austria | GDP Growth QQ Prelim | Q2 | |
30 Jul 2021 | 10:00 | Italy | GDP Prelim QQ | Q2 | 1.3% |
30 Jul 2021 | 10:00 | Italy | GDP Prelim YY | Q2 | 15.8% |
30 Jul 2021 | 11:00 | Italy | CPI (EU Norm) Prelim MM | Jul | |
30 Jul 2021 | 11:00 | Italy | CPI (EU Norm) Prelim YY | Jul | |
30 Jul 2021 | 11:00 | Euro Zone | HICP Flash YY | Jul | 2.0% |
30 Jul 2021 | 11:00 | Euro Zone | HICP-X F&E Flash YY | Jul | 0.9% |
30 Jul 2021 | 11:00 | Euro Zone | GDP Flash Prelim YY | Q2 | 13.2% |
30 Jul 2021 | 11:00 | Euro Zone | GDP Flash Prelim QQ | Q2 | 1.5% |
30 Jul 2021 | 11:00 | Euro Zone | Unemployment Rate | Jun | 7.9% |
30 Jul 2021 | 12:00 | Italy | CPI (EU Norm) Prelim MM | Jul | |
30 Jul 2021 | 12:00 | Italy | CPI (EU Norm) Prelim YY | Jul | |
30 Jul 2021 | 14:30 | United States | Consumption, Adjusted MM | Jun | 0.5% |
30 Jul 2021 | 14:30 | Canada | GDP MM | May | |
30 Jul 2021 | 16:00 | United States | U Mich Sentiment Final | Jul | 81.3 |
(Refinitiv)
AI: The good, the bad, and the bubble
While a deep recession may not be iminent thanks to central bank policy, interest rates will have to stay high for longer, and this will be accompanied by volatility risk from the unwinding of bubbles, especially within AI.
Steen Jakobsen,
Chief Investment Officer
The emergence of advanced AI systems is by far the most surprising event this year, turning everything upside down, while risks and benefits are debated. AI will also become an arms race between the US and China.
Peter Garnry,
Head of Equity Strategy
As China navigates global fragmentation, its cycle of technology application, productivity enhancement, and growth is threatened by US breakthroughs in generative AI, limited computing power, and geopolitical tensions.
Redmond Wong,
Market Strategist
Japan’s expertise in semiconductors and robotic integration could be the foundation of AI dominance. Combining two of this year's themes, Japanese equities and artificial intelligence, brings a wave of opportunities.
Charu Chanana,
Market Strategist
The AI fever has turned the technology into a darling, pushing crypto further into no-man’s-land. There are striking similarities between AI and crypto, and if these are to come full circle, AI won't be spared for bubbles.
Mads Eberhardt,
Cryptocurrency Analyst
Stocks related to artificial intelligence (AI) have appeared on investors' radars. Expectations are high, but it may be necessary to consider how to get exposure to AI in a diversified way.
Hans Oudshoorn,
Trainer Academy
The USD is on its back foot as markets celebrate an eventual Fed rate peak and steady long US yields. The stakes are even higher for the Japanese yen if longer major sovereign yield curves have to price in economic acceleration.
John J. Hardy,
Head of FX Strategy
While commodities, broadly speaking, have faced some tough months, a partial reversal during June could signal that the asset class is getting back on its feet with energy holding up and precious metals with upside potential.
Ole S. Hansen,
Head of Commodity Strategy
As inflation remains high central banks face hard decisions about whether they should keep hiking interest rates or stop. Meanwhile, the rise of AI creates bubble-like conditions that only make the decision harder.
Althea Spinozzi,
Senior Fixed Income Strategist
