Senior Relationship Manager
Saxo Morning Brew
The Debt Ceiling, remains the key topic in the markets, followed by cooling real estate markets and overall economic worries and trade frictions with China with inflation continuing to loom over markets as well. Equities were under pressure yesterday and US Yields rose. The S&P lost 1.1%, the and the Dow 0.7% and the Nasdaq 1.3%, the GER40 fell to 16.000 again.
2 year Yields in the US rose to 4.4% before receding to 4.3 again, The USD Index tested the resistance at 103.60 now 103.40. EURUSD seems to have found some support at 1.0760 to trade at 85, GBPUSD at 1.2400 to trade at 40, USDJPY is at 138.45.
Gold and Silver also rebounded somewhat to 1976 and 23.45 from 1952 and 23.12.
After James Bullard and Neel Kashkari spoke hawkishly on Monday, todays Fed Minutes will be watched carefully. The most likely outcome of the Fed meeting on June 14th is still no action but the probability of a hike by 25 basis points has risen to 32% and the year end rate is traded only 34 basis points below the current market.
Oil rose yesterday and remains friendly today gained after U.S. inventories and fuel supplies came lower and the warning from Saudi Arabia to speculators.
Our Strategist Charu Chanana published a very insightfull story on Investment opportunities in India: Investing for the Next Decade,
UK Inflation fell to 8.7% but is 0.5% above expectation which was at 8.2%.
Remain cautions around the US Debt Ceiling and the FOMC Minutes today, as well as the German IFO.
Interesting comments came out of the US saying doners as well as voters need to put pressure on their representatives to get the Debt ceiling issue resolved – more pressure on markets may be needed.
Wednesday 24 May:
Data: New Zealand RBNZ Official Cash Rate (May), United Kingdom Inflation (Apr), Germany Ifo Business Climate (May), United States Fed FOMC Minutes (May)
Earnings: Xiaomi, XPeng, Lenovo, Nvidia
Thursday 25 May
Germany GDP (Q1, final), United States GDP (Q1, 2nd est.), United States Initial Jobless Claims (May 20)
Pending Home Sales (Apr)
Friday 26 May
Japan Tokyo CPI (May), Australia Retail Sales (Apr, prelim), United Kingdom Retail Sales (Apr)
United States Personal Income and Consumption (Apr), Core PCE Price Index (Apr), UoM Sentiment (May, final),
Earnings; Costco, Dollar Tree, Best Buy, Gap, Meituan, NetEase
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy