Morning Brew October 22 2024

Good morning.

As we juggle a vast number topics, rising debt and yields are slowly gaining traction as a key topic. US 10 Year Yields have risen from 3.6% to 4.2% in a short while, pulling the USD Index from close to 100 to nearly 104.

Ray Dalio mentioned rising debt as one of the key worries for the global economy on the weekend, Elon Musk pointed out the unsustainability of the interest payments on X yesterday.

Tangible assets like stocks, Gold and Silver are doing exceptionally well, Gold is at an all-time high, Silver at a 13 Year high and Equities are extremely strong despite rising yields. The Japanese Yen has lost almost 10 yen against the USD in the last month!

Gold is trading at 2731, Silver above 34, Bitcoin 67500, the US 500 is 35 Points below all-time highs, the US 30 is around ant 42900, the US TECH 100 NAS 20300 and the GER 40 is at 19560.

Nvidia reached a new all-time high yesterday at 143, SAP raised its profit forecast and is expected to open 3% higher. As the highest weighted German stock, it is supporting the Dax. Logitech also reported good results and raised the outllok

What do we look out for at the moment:

• The US election is fast approaching and one of the most important topics. Charu and the Strats team put together top 10 questions that move investors and answered them.
• China is propping up the economy with a wide array of stimulus measures. I was just travelling in Asia for 3 weeks, and found the low number of Chinese tourists absolutely stunning.
• Tensions in the middle East and Support from China boost oil
• We are awaiting key earnings from Tesla, IBM UPS and other heavyweights.
• Reuters is reporting massive outflows from Thematic ETF into broader market ones, with the S&P 500 yielding 22% year to date, the higher risk of a targeted asset allocation seems not appealing.
• The Middle East remains in focus.

Today the economic Agenda is fairly thin, the Hungarian rate decision and the Canadian PPI are the key economic releases, Earnings and market comments are likely key.

Tuesday
- Data Hungary Rate Decision
- Earnings: Verizon, GM, 3M, RTX, Texas Instruments, Philip Morris, Lockheed Martin. Baker Hughes,

Wednesday
- Data Japan Chain Store Sales, Bank of Canada Rate Decision, EU Consumer Confidence,
- Earnings:  Boeing, AT&T, Coca Cola, Thermofischer, CME, Tesla, IBM, TMobile,

Thursday
- Data International PMI US Initial Jobless Claims ,
- Earnings American Airlines , UPS, Nasdaq,

Friday
- Data Japan CPI, DE IFO, US Durable Goods Orders
- Earnings, Colgate Palmolive

Expiry Physically Settled Futures

CLX4 will expire on 24/oct at 1500 hrs
ECOX4 will expire on 25/oct at 0900 hrs
OJX4 will expire on 25/oct at 1215 hrs
RCX4 will expire on 28/oct at 0900 hrs

Trade Safely!