Morning Brew June 29 2022
Senior Relationship Manager
Summary: Confidence wanes
A disappointing US Consumer confidence caused equities to slip yesterday, the expectation was 100.4 and 98.7 was released.
Indexes fell and overall risk sentiment declined. The US Dollar gained across the board even if yields remained calm and traded lower. The USD Index traded at 103.80 yesterday morning and rose to 104.55.
EURUSD fell to below 1.05 at 1.0493, GBPUSD to 1.2195 and Gold and Silver dropped to 1820 and 20.85. The Yen can rise against the USD on higher than expected retail sales.
The Dow fell 1.5%, the S&P500 fell 2% and the Nasdaq nearly 3. According to Reuters, the S&P is likely to suffer the largest first half decline since 1970, it is currently down 19.82%.
Turkey agreed to let Sweden and Finland join NATO
The EU agreed on laws to combat climate change by ending combustion engine cars from 2035 , and a multibillion-euro fund
The ECB is looking if it should quantify the upcoming bond-buying scheme, as the impact so far is not convincing.
Peter wrote a great comment on Nike , “Nike’s cautious outlook shows the consumer is hit by inflation” and the implication of the bleak outlook, it is worth a read, the stock had lost 7%.
Toyota announced it is missed the global production target for May, making it the third month in a row where supply chain issues and lockdowns in China disrupt the plans.
Today we are looking at the Spanish inflation data at 9, EU Sentiment at 11:00, German Inflation at 14:00, the US GDP at 14:30 , tomorrow, UK GDP, Swiss KOF, German and EU Unemployment, German Price data, as well as US Consumption data Friday
H1 and Q2 adjustments are likely and as we saw yesterday with Nike, news drive the markets. Overall we remain in a bearish environment and need a strong move to pull us higher.
Remain diversified and manage risk actively.
Physically Settled Futures:
CNM2 will expire 29th June at 8:35 GMT
RRN2, SILN2, SIN2, STFN2, XCN2, XKN2, XWN2, ZCN2, ZLN2, ZMN2, ZSN2 will expire 29th June at 15:00 GMT
RBN2, SBN2 will 30th June at 15:00 GMT
BZQ2 will expire 30th June at 18:30 GMT
CHINA50JUN22, HK50JUN22,SINGAPOREJUN22, TAIWAN95JUN22 will expire 29th June at 2:00 GMT
INDIA50JUN22 will expire 30th June at 2:00 GMT
OILUKAUG22 will expire 30th June at 15:00 GMT