Senior Relationship Manager
Good Morning,
Risk sentiment is off to a strong start in March after a weak February, the S&P 500 fell 2.61%, the Dow slid 4.19% and the Nasdaq shed 1.11% bit after China's reported the fastest growth in more than a decade, global stock futures rise.
EURUSD is trading at 1.0610, GBPUSD 1.2060 and USDJPY 136.25. Gold and Silver made a strong recovery yesterday to now trade 1836 and 21.15. Gold held at the 200d exponential moving average which boosted sentiment .
The rate picture remains unchanged but US Consumer confidence was lower than expected, the expectation was 108.5 and the actual number 102.9 maybe indicating less spending coming up by US Consumers while Chinese production increases may help relieve supply issues.
Today we are expecting global PMIs with Italy 9:45, France 9:50, Germany 9:55 the EU at 10:00, Canada 15:30 and the US 15:45, German HICP will be released at 14:00 and the US ISM Manufacturing at 16:00.
It looks like a tug of war between rate fears and growth hopes or at least the lack of a global recession.
Let us hope for a successful March for all
Data Today:
Data: Interational PMI, Germany CPI
Earnings: Royal Bank of Canada Budweiser Salesforce Snowflake Lowe's Reckitt Benckiser Anheuser-Busch
Thursday
Data: EU HICP, Employment
Earnings Merck Hapag-Lloyd Haleon Toronto-Dominion Costco Broadcom VMware Universal Music Marvell London Stock Exchange
Friday
Data: International PMI, ISM Services
Earnings: Canadian Natural Resources
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.