Global Macro APAC Morning Brief
Summary: Morning APAC Global Macro & Cross-Asset Snapshot
Happy Macro Thus 26 Sep 2019
APAC Global Macro Morning Call
O/N, Levels & Thoughts:
So it looks like the US markets could not care about the impeachment investigation launch by the democrats, as equities jumped yesterday alongside the release of the Trump/Zelensky transcript of their call.
We touched on KVP’s initial thoughts on what is going to be a massive campaign by the Democrats & potential strategic blunder, on yesterday’s Macro brief.
Trump talked up a trade agreement with China, which the markets potentially bought – worth bearing in mind, we are also bouncing back from three days of pullbacks.
The S&P closed up to 2985 +0.62% whilst the Nasdaq100 doubled that with a +1.21% lift to 7804. The US dollar continues be bid & the DXY closed at 99.04 continuing to make newer highs for the year.
Yields also saw a lift higher, as we saw UST get to 1.74%, the 2/10s is sitting at around +5bp. Bunds & JGBs are at c. -58bp & -26bp respectively.
Gold & silver had a bearish session sat -1.8% & -3.8% to 1506 & 17.97. Brent Crude closed at 62.39 down -1.1% for the session, US Crude inventories surprised to the upside +2.4m a vs. -0.3m e
We also had central bank rate decisions out of New Zealand & the Thailand, where both boards left rates unchanged at 1.00% & 1.50%, in-line with expectations.
- EZ: Private Loans, Money Suppler, ECB Economic Bulletin
- US: Pending Home Sales, Weekly Unemployment Claims, Trade Balance, Final 2Q GDP 2.0%e/p
- Plus FOMC members Bullard (who was advocating for a -50bp cut) & Clarida (who was part of consensus -25bp cut)
- Central Banks (SGT/HKT times)): BoJ’s Kuroda speaking (14:35) ECB’s Draghi (21:30) Careney (21:45)
- As well as rate decisions out of the Philippines & Mexico, with the market expecting a -25bp from both to 4.00% & 7.70% respectively
- To catch this wk’s Macro Monday Click here…
- Don’t forget to bookmark & check our Daily SaxoStrats calls from the European morning session c. 09:00 CET
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.