Morning Brew October 27 2021
Senior Relationship Manager
Summary: Global rates and earnings are driving the markets it seems.
Tomorrow and Friday I will be travelling to see clients, next update will follow Monday.
Global rates and earnings are driving the markets it seems.
Equities traded friendly and Dow as well as the S&P 500 closed at new records but with 0.04% and 0.18% the gains were minute. Facebook fell on worries that Apple`s privacy rules would hurt, but Nvidia could rise 6.7%. UPS gains almost 7% on strong earnings. Microsoft and Alphabet made only smaller moves on the results last night.
Robin Hood disappointed with a loss almost twice as bad as expected, shares lose 8%. Deutsche bank can beat expectations this morning.
Sterling rose to the highest levels since Q1 2020 against the Euro on diverging rate -views, UK earnings rose the most since 2008. The BOE announces rates on November 4th, the ECB tomorrow. No change is expected by the ECB and the resignation of the Berman Bundesbank Head Jens Weidman hints at dovish tones. The Euro is weak overall trading at 1.1600 against the USD.
The Australian Dollar gained on strong inflation data that raised rate expectations, with a net profit of 194 million Euros.
Gold fell below the 200day moving average and is trading near the 1780 support, Silver is near the 24 level.
Durable goods orders will be the most important event today, the Canadian Rate decision comes at 16:00 CET but no change is expected. Tomorrow the ECB will be key, and Friday the EU Prices and GDP, the US PCE, the Chicago PMI and the University of Michigan sentiment
Tomorrow: Apple Inc Amazon.com Mastercard Comcast Merck & Co Royal Dutch Shell Shopify Inc Friday: China Construction Bank Exxon Mobil Corp AbbVie Inc Chevron Corp
Physically Settled Futures:
NGX1 will expire 27th October at 15:00 GMT
EMAX1 will expire 28th October at 09:00 GMT
HGX1, RRX1, XKX1, ZSX1 will expire 28th October at 15:00 GMT
GASOLINEUSNOV21, HEATINGOILNOV21, SOYBEANSNOV21 will expire 27th October at 15:00 GMT
CHINA50OCT21, INDIA50OCT21, SINGAPOREOCT21, TAIWAN95OCT21 will expire 28th October at 02:00 GMT
OILUKDEC21 will expire 29th October at 15:00 GMT
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.