Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning BrewMay 2 2024

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Summary:  Sell in May and go away?

Good morning,

As expected yesterday the Fed did not change rates but Jerome Powell hit more dovish tones than expected by stating that while there was a lack of recent progress in the Fed’s battle with inflation, interest rates are likely headed lower The Fed annoubced it will reduce the pace at which it is shrinking its balance sheet by lowering the amounts of bonds to $25 billion running off monthly versus the current $60 billion.

10 Year Yields are at 4.61 and the USD Index at 105.70. EURUSD 1.0713, GBPUSD 1.2533 and USDJPY 155.77. As the Bank  of Japan seems to be very active intervening in the currency, FX Options may be the best way to play the Yen. Gold and found buyers again but remain in danger as Kim points out

Equities traded mixed as the Dow gained on the dovish fed while tech seemed to confirm the old “Sell in May and go away proverb” after a weak sales outlook for Chips. Super micro computer shed 14%, AMD 9% and Nvidia almost 4%. Starbucks disappointed with it`s outlook and lost almost 17%.

The Dow gained 0.3% while the S&P and the Nasdaq lost 0.3%. Volumes were very high at 12 Bio. It is a bit curious that the topline indexes seem to move little but the underlying index components swing enormously.

Novo Nordisk beat expectations this morning and is clearly the stock to watch. The company is clearly in one of the sweet spot at the moment, shell also exceeded expectations.

We are expecting the Swiss CPI and PMI today, the US Initial jobless claims and Factory Orders, Apple will announce results today before we head into tomorrow Non Farm Payroll

Trade safely.

- Data US Initial Jobless Claims
- Earnings: Novo Nordisk, Linde, Apple, Amgen, Shell, ConocoPhillips,

- Data EU unemployment, US Nonfarm Payroll, PMI,

Saturday: Berkshire Hathaway



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 (
Full disclaimer (
Full disclaimer (

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

Contact Saxo

Select region


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.