Podcast: USD breakout, commodities plunging, and equities love ’junk’
Saxo Market Call
Summary: Yesterday's session was quite a spectacle with commodities plunging 5% as the USD saw massive breakout against the EUR as punitive energy prices in Europe were igniting recession fears once again. With bond yields following commodities lower equities flows went into overdrive with commodity stocks naturally trading lower but the session evolved to a massive buy the worst performers this year and sell the best performers. In that world all the 'junk' pockets of equities rallied on the signal from commodities that a recession could be coming. July is typically a low liquidity month so moves can easily be amplified so remember this before putting too much weight on yesterday's moves. Today's pod features Peter Garnry on equities and Ole Hansen on commodities.
Listen to today’s podcast - slides are found via the link.
Follow Saxo Market Call on your favorite podcast app:
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.