Erik Schafhauser Zürich

Morning Brew June 01 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Good Morning,

Hopes that inflation is peaking were disappointed yesterday as the EU HICP came 0.3% higher than expected, yields rose and equities came under pressure. Jerome Powell and Joe Biden will meet tomorrow to discuss inflation tomorrow. The 2 year German yields hit a ten year high and the US 10 Year seems to be aiming for the 3% again. The USD Index rose back to above 102 and Gold and Silver came under pressure to trade at 1831 and 21.47. Key support for Silver is 21.25.

Equities held up well with US indexes falling app 0.5% only, the GER40 recovered app 100 points off yesterdays  lows to trade at 14440.

The EU agreed on an oil embargo against Russia in a fairly light fashion and the US are looking to provide Ukraine with advanced rocket technology. Ukraine is asking for stronger sanctions against Russia.

The Chinese PMI for May was reported at 48.1 meaning we were still in contraction below 50. 

German retail Sales came at a very disappointing -5.4% this morning

Through the day we are expecting international PMIs with the EU one at 10:00 and the US at 16:00 key, The EU unemployment rate at 11:00 and the Bank of Canada rate decision also of importance. The Bank of Canada is expected to hike by 50 Basis Points

We are looking ahead at a very interesting month with many central banks expected to hike rates including the Fed, the ECB and even the SNB acc to Reuters calculations. The Fed will discontinue it`s asset purchases and there is lots of uncertainty about the market reaction.

Expiries

        Physically Settled Futures:

LEM2 will expire 3rd of June at 15:00 GMT.

CONFM2, FBONM2, FBTPM2, FBTSM2, FGBLM2, FGBMM2, FGBSM2, FGBXM2, FOATM2 will expire 7th of June at 15:00 GMT.

Expiring CFDs:

LIVECATTLEJUN22 will expire 2nd of June at 15:00 GMT.

10YBTPJUN22, 10YOATJUN22, BOBLJUN22, BUNDJUN22, SCHATZJUN22 will expire 6th of June at 15:00 GMT.

Quarterly Outlook

01 /

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

Content disclaimer

None of the information provided on this website constitutes an offer, solicitation, or endorsement to buy or sell any financial instrument, nor is it financial, investment, or trading advice. Saxo Bank A/S and its entities within the Saxo Bank Group provide execution-only services, with all trades and investments based on self-directed decisions. Analysis, research, and educational content is for informational purposes only and should not be considered advice nor a recommendation.

Saxo’s content may reflect the personal views of the author, which are subject to change without notice. Mentions of specific financial products are for illustrative purposes only and may serve to clarify financial literacy topics. Content classified as investment research is marketing material and does not meet legal requirements for independent research.

Before making any investment decisions, you should assess your own financial situation, needs, and objectives, and consider seeking independent professional advice. Saxo does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900 Hellerup
Denmark

Contact Saxo

Select region

International
International

All trading and investing comes with risk, including but not limited to the potential to lose your entire invested amount.

Information on our international website (as selected from the globe drop-down) can be accessed worldwide and relates to Saxo Bank A/S as the parent company of the Saxo Bank Group. Any mention of the Saxo Bank Group refers to the overall organisation, including subsidiaries and branches under Saxo Bank A/S. Client agreements are made with the relevant Saxo entity based on your country of residence and are governed by the applicable laws of that entity's jurisdiction.

Apple and the Apple logo are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.