Morning BrewMarch 25 2022
Senior Relationship Manager
Summary: Overly Complacent? Nvidia pulls markets higher
Stocks rose yesterday led by tech and aided by lower energy prices. Fears on a shortage in Europe ease as there is so far no agreement on an overall energy import ban against Russia, the US is also looking to release further reserves. Nvidia announced to use cash to expand its business instead of buying back its own stock, causing the shares to rise by almost 10% and pulling tech higher overall. Indexes closed higher with the Dow up 1%,the S&P 500 1.4% and the Nasdaq up 1.9%. The GER40 trading at 14330
Reports are out that Europe has reached an agreement on the Digital Markets Act (DMA) sets out rules for online gatekeepers, companies that control data and platform access like Google, Facebook. Apple and Facebook. The Act seeks to regulate companies with a market capitalization of 75 billion euros, 7.5 billion euros in annual turnover and at least 45 million regular users.
Gold and Silver jumped higher on lack of progress in Ukraine, EURUSD Rose back above 1.10 and GBPUSD 1.32 USDJPY is trading off the high at near 122.40, currently 121.70.
The Russian rouble extended its gains yesterday and traded close to 96 against the dollar, stocks market rose after the reopening.
Bitcoin is nearing the 45k again and a break above would be a bullish signal
UK Retail sales disappointed this morning, the YoY figure came at 7% vs 7.8% expected, further we are expecting the Spanish GDP at 9, the German IFO at 10 and the University of Michigan Confidence at 15:00.
Next week will be the quarter end and the Japanese fiscal year end, it looks like traders are aiming for a strong finale, we continue see severe overall risks in the market and would still suggest caution and smaller positions or optionality.
Physically Settled Futures:
NGJ2 will expire 28th March at 7:30 GMT.
NATGASUSAPR22 will expire on 25 March at 15:00 GMT.
GASOLINEUSAPR22 and GOLDAPR22 will expire on 29 March at 15:00 GMT.
Futures can be rolled online via the Futures Spread Trade Ticket. Any open positions will be closed after the mentioned times.
Latest Market Insights
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.