Morning Brew July 27 2021
Senior Relationship Manager
Summary: Risk on on apparent calming in Ukraine
Easing tensions in Ukraine – or at least the hope thereof – sparked risk on sentiment and weighed on safe haven demand. The Dow gains 1.22% the S&P 1.58% and the Nasdaq 2.53%. Tech Stocks got fueled further by Intel`s takeover of Tower Semiconductor, Nvidia adds almost 10% ahead of the numbers today, Tesla more than 5% and apple more than 2%. Dax rose to 15433.
Gold and Silver lost and EURUSD gained while US 10 Year Yields rose to above 2.00 again. The USD Index fell to just below 96 and GBPUSD is trading at 1.3550 ahead of the UK CPI at 8:00 this morning, the expectation is for a 5.4% increase in prices. Gold is currently trading at 1854 so below the 1876 resistance again but well above the 1835 support. Silver fell to near 23,00 yesterday but made up half the losses to trade at 23.40 now.
Oil briefly fell to below 91 before stabilizing to 92.20.
Positive signals out of Ukraine were apparent withdrawal of Russian troops and an apparent willingness on the Russian side to continue talks.
Shortly after the good news, Ukraine reported massive cyberattacks and the US pointed out that there are still large number of troops on the border.
Chinese Inflation came less high than feared, the PPI at 9.1% vs 9.5% expected and the CPI at 0.9% vs 1% expected.
Driver today will be any confirmation of a de-escalation in the Ukraine or rising tensions again. Is worth taking note that Equities remain near the top while commodities and Precious Metals have retreated from the extremes toward caution.
Please bear in mind that market moves are larger than normal, the daily swings in the Dax index are almost 50% above the average, please take that into consideration.
Key Data coming up:
Today : UK CPI, US Retail sales, US Industrial Production
17th Turkey Rate decision, US Jobl3ess Data and Phily Fed
18th UK Retail Sales, Eurozone Consumer Confidence
Earnings today are Shopify,Wix.com, Hilton, Kraft, AMC, Nvidia and Cisco.