Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning BrewMay 12 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Good Morning,

Risk Off Sentiment remains in the driver seat and markets extremely volatile.

Indexes are under pressure despite falling yields and the USD continues to soar. This morning the GER40 falls to 13540, the USTECH to 11957 and the US500 to 3928. Tesla falls +8% weighing on sentiment further.

The USD Index rises to 104.15, EURUSD is hovering the 1.0490, GBPUSD at 1.2185, USDJOPY falls to 129.50. US ten Years fall to 2.85 the Bund Future rises by 100 BPS, interestingly Implied Vol falls more than 1%. The UK GDP came lower than expected this morning at 6.4% vs 6.8%.

Bitcoin fell to  below 27k, giving up all of 2021 gains.

 Oil falls on cited growth worries.

Foxconn reports an increase of 5% in profits and Softbank posts a Q1 loss of USD 13bio. Chinese developer Sunac China missed the deadline for coupon payments on a $742 million offshore bond.

Quick tech comments:  S&P500 on course for target around 3,815 in May. However, 3,500 is not unlikely

Nasdaq 100 below support at 12,208. No strong support before around 11,152, DAX in down trend , next support is 13.380

US 10 Year T-Note likely to bounce to 122  and yield could correct to around 2.5%

Key economic Data is the US PPI at 14:30, the key metrics is annual number ex Food & Energy expected at 8.9%.

Tomorrow I will be on a business Trip and not writing an update. Watch out for the Chinese,  German and US CPI numbers at 8:00 CET and 14:30 CET as the key events.

Our Steen Jacobsen points out that the market is sentiment driven and not really anchored to the economy so any

Expiries
Physically Settled Futures:
CLM2 will expire on 20th May 2022 at 15:00 GMT.
PAM2 will expire on 23rd May 2022 at 15:00 GMT.

Expiring CFDs:

OILUSJUN22 will expire on 18th May at 15:00 GMT.

NATGASUSJUN22 will expire on 24th May at 15:00 GMT.

 

 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.