Morning Brew August 24 2022
Senior Relationship Manager
Risk sentiment remains low but the selloff lost steam. Disappointing Purchasing Manager Indexes raised hopes of dovish central banks. Indexes closed slightly lower and are currently near yesterday’s closing levels.
The USD Index retreated to below 109 to trade at 108.66, EURUSD remains below parity at 0.9950, Cable 1.1815 and EURCHF 0.96. Gold and Silver could stabilize to 1746 and 19.10 Bitcoin is meandering around 21000. 1 month ATM Vol for EURUSD remains elevated near 11%.
We had a client event in Zurich yesterday and our CIO Steen reiterated his belief t hat we will see a rise in oil prices. As Gas continues to soar, there will be a rush to substitute gas with oil wherever possible. Gas prices have risen almost 40% in August so far and nearly 300% this year.
The key view is that the tangible assets will outperform intangible ones.
The Kansas City Federal Reserve annual monetary policy conference in Jackson Hole is coming into focus and will likely dominate the rest of the week, The Key Event will be Powell speaking on Friday but expect comments form other central bankers to hit the wires at all times.
The Fight against inflation remains the key matter.
While the economic agenda is thin today, three important tech companies report and Peter covered that in a note: Nvidia, Salesforce, and Snowflake report earnings tomorrow providing more clarity on technology spending and the outlook for the overall technology sector. Nvidia is expected to report a big drop in its growth rate due to weakening demand in gaming and more importantly crypto mining. Salesforce is expected to show solid growth and here investors will focus on the Slack integration and what it means for growth ahead. Snowflake's growth rate is coming down and thus investors will demand improvements in the operating income. Pease find the full comment here
Today: US Durable Goods Orders
Thursday: German GDP, IFO, US GDP,
Friday: US GDP, Powell Speaks at Jackson Hole
Today: NVIDIA, Salesforce, , Snowflake
Thursday: VMware Inc
Friday: Industrial Bank
Physically Settled Futures:
Cocoa (CCU2) will expire 24th Aug at 15:00 GMT
Robusta Coffee (RCU2) will expire 24th Aug at 9:00 GMT
CNX Nifty Index (INQ2) will expire 25th Aug at 10:15 GMT
NATGASUSSEP22 will expire 25th Aug at 15:00 GMT
INDIA50AUG22 will expire 25th Aug at 2:00 GMT