Erik Erik Erik

Morning Brew June 27 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Risk on in a week with little economic data


 Good Morning,

Risk on sentiment drove stocks in to a strong weekly close that saw the S&P 7% higher . The Dow gained 2.7% the S&P 3.06 and the Nasdaq 3.3% on Friday. Driver was mainly that the economic slowdown and falling commodity prices would allow the FED and other central banks to be less hawkish. 

Over night, sentiment remains strong and the GER40 gains to 13167, a break above 13220 would allow for 13500.

US 10 Year yields are at 3.18%, EURUSD 1.0560, GBPUSD at 1.2275, Gold and Silver could gain to 1834 and 21.35 – back in mid range. Oil gains off the low to trade at 107.20 in the US line.

At the G7 Meeting it was announced that an Import ban on Russian Gold is being planned, a break out of the range will likely be driven by rising short term  rates, negative for gold, and the probability of a recession – implying  rate cuts, positive for gold.

Bitcoin can recover to above 21k and ether to 1215.

The Turkish lira gained an on intervention that restrict lira lending to many companies with more than $1 million in foreign currency cash in the latest step to reverse a slide in the currency.

Russia is likely to in default as bond holders did not receive coupon payments by now

Swiss judges will announce their verdict if  Suisse failed to prevent money laundering related to cocaine trafficking.

A winding-up petition has been filed against embattled property developer China Evergrande Group. 

A complaint has been filed against Google in Denmark against the Google Job search.

This weeks key events are US Durable Goods Orders today at 14:30, US consumer Confidence tomorrow at 16:00 EU Consumer Confidence and the US GDP on Wednesday  Thursday  UK GDP, Swiss KOF, German and EU Unemployment,, German Price data, as well as US Consumption data Friday the Japanese will be released, followed by the Chinse and international  PMIs

We are likely to see half year and quarterly position adjustments and overall nervous trading, the lack of decisive economic data will make for news driven trading

Expiries

Physically Settled Futures:

NGN2 will expire 27th June at 15:00 GMT

TTFMN2 will expire 28th June at 15:00 GMT

CNM2 will expire 29th June at 8:35 GMT

RRN2, SILN2, SIN2, STFN2, XCN2, XKN2, XWN2, ZCN2, ZLN2, ZMN2, ZSN2 will expire 29th June at 15:00 GMT

Expiring CFDs:

COPPERUSJUL22, CORNJUL22, GASOLINEUSJUL22. HEATINGOILJUL22, SILVERJUL22, SOYBEANOILJUL22, SOYBEANMEALJUL22, SOYBEANSJUL22, SUGARNYJUL22, WHEATJUL22 will expire on 28th of June at 15:00 GMT
CHINA50JUN22, HK50JUN22,SINGAPOREJUN22, TAIWAN95JUN22 will expire 29th June at 2:00 GMT

Remain cautious!

 

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