Morning BrewMay 12 2022

Good Morning,

Risk Off Sentiment remains in the driver seat and markets extremely volatile.

Indexes are under pressure despite falling yields and the USD continues to soar. This morning the GER40 falls to 13540, the USTECH to 11957 and the US500 to 3928. Tesla falls +8% weighing on sentiment further.

The USD Index rises to 104.15, EURUSD is hovering the 1.0490, GBPUSD at 1.2185, USDJOPY falls to 129.50. US ten Years fall to 2.85 the Bund Future rises by 100 BPS, interestingly Implied Vol falls more than 1%. The UK GDP came lower than expected this morning at 6.4% vs 6.8%.

Bitcoin fell to  below 27k, giving up all of 2021 gains.

 Oil falls on cited growth worries.

Foxconn reports an increase of 5% in profits and Softbank posts a Q1 loss of USD 13bio. Chinese developer Sunac China missed the deadline for coupon payments on a $742 million offshore bond.

Quick tech comments:  S&P500 on course for target around 3,815 in May. However, 3,500 is not unlikely

Nasdaq 100 below support at 12,208. No strong support before around 11,152, DAX in down trend , next support is 13.380

US 10 Year T-Note likely to bounce to 122  and yield could correct to around 2.5%

Key economic Data is the US PPI at 14:30, the key metrics is annual number ex Food & Energy expected at 8.9%.

Tomorrow I will be on a business Trip and not writing an update. Watch out for the Chinese,  German and US CPI numbers at 8:00 CET and 14:30 CET as the key events.

Our Steen Jacobsen points out that the market is sentiment driven and not really anchored to the economy so any

Expiries
Physically Settled Futures:
CLM2 will expire on 20^th May 2022 at 15:00 GMT.
PAM2 will expire on 23^rd May 2022 at 15:00 GMT.

Expiring CFDs:

OILUSJUN22 will expire on 18^th May at 15:00 GMT.

NATGASUSJUN22 will expire on 24^th May at 15:00 GMT.