Senior Relationship Manager
Good Morning,
Rising rate hike fears pushed US Yields higher, the 10 Year traded as high as 3.44%. Fear rose that after the high CPI on Friday, we could be looking at a 75bps hike tomorrow as the Fed tries to finally get inflation under control. This cand caused Equities so sell off globally and the USD to strengthen against basically everything else.
The SP 500 formally entered into a bear market – closing more than 20% off the high, it closed 3.9% lower below May lows and the next key support is 3,500
The Dow lost 2.8% and the Nasdaq 4.7%, Tesla fell to 648, down 7% Apple 3.8%, Alphabet 4.3% and Nvidia 7.8%. The GER40 fell to 13370 before recovering to 13590 Please find Kim’s technical comment here, The more fundamental one by Peter here. The ASX fell 4.6% and the Nikkei 2%.
The USD Index rose to 105.30 before calming to 105, EURUSD is trading at 1.0430 and GBPUSD 1.2180. The Yen is holding up having failed to breach the 135 significantly.
Gold and silver fell to 1808 and 20.90, currently at 1828 and 21.30.
Bitcoin was hit by the rate fears as well as renewed safety issues fuelled by the issues at Celsius, Bitcoin is trading at 22500 after trading 10000 higher last week, the low was at 20800.
Besides inflation and rates almost all other news take the backseat but the UKs decision to unilaterally change the Brexit agreement is likely to cause issues between the EU and the UK.
The German HICP just came out as expected or feared at an annual rate of 8.7%`
Later in the day we are expecting the German ZEW and the US PPI
Tomorrow: US FOMC with a 50 BPS hike expected with fears ranging to 75BPS
Thursday: Swiss National Bank, no change expected
Thursday: Bank of England, hike of 25BPS expected.
Friday: Bank of Japan, no change expected
Even if we are seeing a small recovery this morning remain extremely cautious and control your risk with every trade you take, complacency can cost dearly.
Consider Options for speculative bets to limit your risk.
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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