Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew November 8 2022

Morning Brew 1 minute to read
Erik
Erik Schafhauser

Senior Relationship Manager

Summary:  Unclear picture in to the election


Good Morning,

Markets paint a bit of an unclear picture ahead of the mid term elections. Indexes closed higher yesterday, near 15 for the big three. Apple, Amazon and tesla dropped while Microsoft, Alphabet and Meta rose. Volume was fairly low with 10.5 bio shares traded in the US vs an average of 11.8%.

FX remained very interesting with the USD Index falling to 110 before recovering to near 110.50 while 10 year yields actually rose to 4.22.

EURUSD is at near parity, GBPUSD at 1.1485 and USDJPY 146.70. Gold and Silver are at 1670 and 20.67.

There is no major economic release today, there are some earnings but I would assume the key to be news around the election causing volatility.

Results are not expected until 1 or two in the morning (CET) and may well take days if there are tight calls.

Asian stocks are weighed by fears China may not reopen soon as new coronavirus cases surged in Guangzhou and other Chinese cities.

 

Expect nervous trading until there are clear directional impulses.

 

 

Headlines:

Joe Biden warned that a Republican victory could weaken the country's democratic institutions

Donald Trump is expected to announce a third run at the white house  this month.

Elon Musk supported Republicans in the mid term election, this was seen as the reason for the tesla share`s decline yesterday.

Economic data:

Tuesday: Nothing

Wednesday: Japan Trade Balance, China PPI and CPI,

Thursday: US CPI and Labor Data

Friday; DE HICP, UK GDP, Uni of Michigan sentiment

Earnings:

Tuesday: NTT, Mitsubishi, Nntendo, Deutsche Post, Mayer, Münchner Rück, Walt Disney, Occidental Petroleum, Constellation Energy

Wednesday: Honda Motor , Manulife Financial, Siemens Healthineers, TC Energy,

Thursday: Deutsche Telekom, Allianz, Merck, Tokyo Electron, Engie, Becton Dickinson, AstraZeneca, Brookfield Asset Management, National Grid, TransDigm

Friday: SoftBank Group, Cie Financiere Richemont

 

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.