The Iran deal-led rally in crude oil prices has spurred energy shares to surpass their January highs with Saxo Bank head of equity strategy Peter Garnry pointing to strong momentum and big inflows as the direct catalyst.
In today's Morning Call, Garnry shared the following breakdown of the energy-sector shares in Saxo's equities model, pointing to strong fundamental scores nearly across the board.
Elsewhere in stocks, Swiss-based luxury conglomerate Richemont disappointed markets in revenue and gross margin terms, reporting operating profits of $1.84 billion versus $2.6bn expected by analysts as well as an excess supply of watches.
In Italy, Garnry says that equity investors could face headline risks over the weekend from Rome's new populist government, stating that short-term investors might not want to hold positions through what could be a turbulent period.
The broad strength seen in equities along with a slight miss in Japanese CPI overnight and high US 10-year yields saw USDJPY reach new highs, but Saxo Bank head of forex strategy John Hardy's focus today is on USDCAD ahead of a March retail sales print and April CPI data out of Ottawa.
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.