Morning Brew January 24 2023
Senior Relationship Manager
Risk sentiment soared again yesterday after some flutters, the Dow gained 0.75%, the S&P 500 1.2% and the Nasdaq another 2%. Apple gained 2.3%, Tesla 7.7% and Nvidia 7.6% as came out bullish for Chips again. Bitcoin rose above the 23k.
US 10 year rates rose to above 3.5 an the UD Index traded as high as 102.30 before receding to 101.80 again. EURUSD is at 1.0890 and GBPUSD 1.24, USDJPY 1.30.
Most interesting yesterday was precious metals where Silver came under severe pressure and fell more than 5% intraday. Gold Fell to 1911 while Silver receded to 22.75, both recovered to 1940 and 23.60, the XAUXAG Ratio breached 84 to fall to 82.25. Barclays is bullish for Chips again as the driver
The German Consumer confidence improved to -33.90, not quite as much as had been expected, that was 33.00.
Today we are awaiting earnings of the first big tech company with Microsoft reporting after the close with a severe slowdown projected. International PMI will e watched to see if Risk sentiment can maintain the momentum. Maybe the data is better than feared?
Our Steen Jacobsen points out the at the first three weeks of a year are considered amateur hour and “real trading” starts after that.
Economic Data & Earnings
Germany Consumer Confidence
Earnings: Johnson & Johnson Verizon Microsoft Corp Texas Instruments Raytheon Technologies Lockheed Martin
Canada Rate decision
Earnings: ASML Holding Tesla Inc IBM ServiceNow Abbott Laboratories NextEra Energy Inc AT&T Inc Boeing Co Automatic Data Processing Automatic Data Processing Inc
US GDP Advance Durable Goods Orders and Labor Data
Earnings: SAP SE Visa Inc LVMH Christian Dior Intel Corp Mastercard Inc Comcast Corp Diageo PLC Blackstone Inc
EU Money Supply
U PCE, Consumption and Conficence
Earnings: American Express Co Chevron Corp
Monday: Taiwan, Hong Kong, China, Indonesia, Korea, Malaysia, Singapore
Physically Settled Futures
ECOG3 notice day on 24 Jan 2023
NGG3 will expire on 27 Jan 2023
HK50JAN23 will expire on 30 Jan 2023