Senior Relationship Manager
Summary: Zaporizhzhia Nuclear Power Plant
Good Morning,
Equities are under pressure this morning on a fire at the Zaporizhzhia Nuclear Power Plant, but can recover a little on news that the fire has been extinguished. Yesterday equites closed lower on rising oil, inflationary pressure and overall uncertainty. News reports that shooting at Zaporizhzhia has stopped and no radiation leaked.
The US 500 is trading at 4341, the US Tech 100 at 13953 and the GER40 at 13420. The US Tech 100 found some support at the 200d line.
EURUSD fell to 1.1020 with the volatility back at 10% and GBPUSD 1.3330 USDJPY remains at 115.50 and the USD Index breaks above 98.
Gold and Silver are at 1935 and 25.20.
Oil fell yesterday on news that a deal with Iran may allow more Iranian exports.
BlackRock suspends purchases of Russian securities in active and passive funds, other asset managers as well as Index providers join.
Tesla and Amazon suffered significant losses, after the Biden Administration announced a 4500USD premium for EVs that are US made in a Unionized factory.
Equities rose off the lows and closed in the green with app 1.5% for the US Indexes
The war in Ukraine continues and Russia entered the town Kherson while government sanctions and corporate boycotts are being stepped up against Russia.
Besides Ukraine and Iran Talks, watch for the EU retail sales and the US Labor data at 14:30 today.
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.