Senior Relationship Manager
Summary: US CPI inconclusive - Quadruple Witching Friday coming up
Good Morning,
The US CPI is out of the way – pretty much in line with expectations and the Apple event yesterday delivered the expected but failed to excite, shares fall 1%.
The CPI came a little lower than expected and drove the 10 year yield lower to currently 1.28 but this failed to cause any further USD weakness nor significantly support equities.
The USD Index briefly traded lower to 92.31 but recovered to 92.64 again, EURUSD is trading at 1.1806 and GBPUSD at 1.3820 after the UK CPI came higher than expected, the annualized number was 3.2% vs 2.9% expected.
Gold could rise above the 1800 USD level while silver followed more the industrial metals and fell slightly to 23.70. Bitcoin rises to near 47k, Ethereum to 3400.
China's factory and retail sectors faltered in August with Industrial Production rising only 5.3% in August and consumer spending only 2.5%. due to fresh coronavirus outbreaks and supply disruptions, expectations were 5.8% and 7%. That does not bode well for the US Industrial Production later today. In China the situation around Evergrande continues to loom over the property market.
Electricity prices in Europe rise to all-time highs the German Baseload Yearly contract rose to 101 yesterday vs a level of 47.8 at the end of 2020.
ON, Swiss IPO of the year is looking for a valuation of USD 6 Billion
Amazon has increased its average starting wage to more than $18 an hour and plans to hire another 125,000 warehouse and transportation workers.
We are looking at the quadruple witching Friday and please remember it is the last time the Dax Future expires with 30 shares the underlying, from Monday it will be 40. Into to the expiry there could be additional volatility.
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