Morning Brew December 1 2021
Senior Relationship Manager
Summary: Risk-On into December
Good morning, and welcome to December.
Risk on across most of the board this morning, equities are around 1% higher with the Dax at 15300, the US 500at 4610 and the US 30 at 34640.
EURUSD 1.1335, GBPUSD 1.3335, Gold 1788 and Silver 22.97, Bitcoin remains at 57k. The Volatlity Index Vix rose to 27 yesterday.
Powell hinted at an earlier tapering roadmap yesterday and it now seems like the end of the asset purchases would happen in Q1 2022 rather than in June. Several senators gave optimistic comments on raising the debt ceiling in time to avoid shut downs.
The US tightens travelling rules but does not outright ban entry.
Opec begins its two day meeting and oil can make up some of the ground it lost yesterday, we fell to a low of 64.43 in the CL contract before recovering to 68.06.
We have a fairly full agenda today with PMI out of France, Spain, Italy, Germany and Switzerland as well as the US. It is likely that inflation is higher than initially expected given the hawkish tones out of the FED yesterday.
Key driver are likely to be news around the Omicron variant and the question if and how far reaching measures will be.