Senior Relationship Manager
Summary: Markets calms a little but avoid complacency as event risk remains extremely high.
Good Morning,
US Indexes lost a little ground yesterday with the Dow -0.56%, the S&P 500 - 0.72%, and the Nasdaq -0.28%, Dax and European Equities made up ground and over night Equities again across the board, app 1% in most indexes.
Gold rose to 2050 with a high at 2069, pulling silver to 26.65, oil rises on the U.S. imposing an immediate ban on Russian oil and other energy imports.
The EUR gained a little in value ahead of tomorrows ECB Meeting, rising to 1.0915, GBPUSD is trading at 1.3120 and the USD Index retreated to 99.
Bitcoin could add 8% to 41600 but US regulation loos as a risk event.
The London Metal Exchange halted trading in Nickel yesterday and cancelled trades yesterday the price doubled to more than $100,000 per ton.
Pls see Peters Equity Update here:
Sanctions on Russia are causing ripple effects everywhere
Summary: Today's equity update touches on the EU's new plan to issue joint bonds to fund massive investments in energy and defence adding further short-term tailwind for Europe's oil and gas industry. The sanctions against Russia are causing all sorts of unintended consequences and ripple effects with the nickel market yesterday jumping in a spectacular way due to a massive short squeeze. The rapid rise in nickel and also lithium carbonate prices are putting enormous pressure on electric vehicle makers such as Tesla.
There is little on the economic Agenda today so all focus will be on Ukraine and the overall fallout of the sanctions that are evolving.
Remain cautious and careful in your position sizes.
AI: The good, the bad, and the bubble
While a deep recession may not be iminent thanks to central bank policy, interest rates will have to stay high for longer, and this will be accompanied by volatility risk from the unwinding of bubbles, especially within AI.
Steen Jakobsen,
Chief Investment Officer
The emergence of advanced AI systems is by far the most surprising event this year, turning everything upside down, while risks and benefits are debated. AI will also become an arms race between the US and China.
Peter Garnry,
Head of Equity Strategy
As China navigates global fragmentation, its cycle of technology application, productivity enhancement, and growth is threatened by US breakthroughs in generative AI, limited computing power, and geopolitical tensions.
Redmond Wong,
Market Strategist
Japan’s expertise in semiconductors and robotic integration could be the foundation of AI dominance. Combining two of this year's themes, Japanese equities and artificial intelligence, brings a wave of opportunities.
Charu Chanana,
Market Strategist
The AI fever has turned the technology into a darling, pushing crypto further into no-man’s-land. There are striking similarities between AI and crypto, and if these are to come full circle, AI won't be spared for bubbles.
Mads Eberhardt,
Cryptocurrency Analyst
Stocks related to artificial intelligence (AI) have appeared on investors' radars. Expectations are high, but it may be necessary to consider how to get exposure to AI in a diversified way.
Hans Oudshoorn,
Trainer Academy
The USD is on its back foot as markets celebrate an eventual Fed rate peak and steady long US yields. The stakes are even higher for the Japanese yen if longer major sovereign yield curves have to price in economic acceleration.
John J. Hardy,
Head of FX Strategy
While commodities, broadly speaking, have faced some tough months, a partial reversal during June could signal that the asset class is getting back on its feet with energy holding up and precious metals with upside potential.
Ole S. Hansen,
Head of Commodity Strategy
As inflation remains high central banks face hard decisions about whether they should keep hiking interest rates or stop. Meanwhile, the rise of AI creates bubble-like conditions that only make the decision harder.
Althea Spinozzi,
Senior Fixed Income Strategist