Senior Relationship Manager
Summary: Dovish Speakers support Equities, Netflix drops after hours
Good Morning,
Equities had the best day in a month yesterday driven by earnings and dovish comments by Charles Evans and Atlanta Feds Raphael Bostic, the Dow gained 1.45%, the S&P 1.6% and the Nasdaq 2.15%, the German Dax gained to 14235 in the Future.
Real 10 year yields turned positive yesterday on 10 year yields exceeding the 3% level for the first time since 2018. Real Yields are the yield of the respective bond minus the expected inflation.
Oil fell 5% yesterday on worries of lower demand due to a lower growth forecast by the IMF, interestingly that did not affect equities. Over night , it can recover roughly 1%.
Japan’s trade balance come at a deficit 4 times higher than expected at JPY 412 bio, the Yen traded as low as 129.40 before a verbal intervention by the BoJ. EURUSD Is at 1.0813 and GBPUSD at 1.3025. Gold and Silver lost some ground on high yields and falling oil and are now at 1940 and 24.99. The USD Index falls slightly to 100.70
Netflix suffered falling subscriber numbers for the first time in a decade, stocks fell 24% in late trading. Twitter also lost 4.5% on uncertainty of a takeover. Elon Musk is rumored to provide an offer in the next ten days.
Credit Suisse expects Q1 loss due to legal costs.
Watch for Tesla earnings today.
Earnings this week:
Economic data:
Trade Safely!
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
A political switch in China towards less tough control of its people and companies may kick things back into gear.
Redmond Wong,
Market Strategist
While the economic situation in Europe may not be as bad as feared, there's still a plethora of things to fix.
Chris Dembik,
Head of Macroeconomic Research
As the world turns increasingly bipolar, equity markets face harsh times as they transition into the new reality.
Peter Garnry,
Head of Equity Strategy
New alliances and collaborations outside of China may lead to prosperous times in Asia.
Charu Chanana,
Market Strategist
For years, it was thought that the balanced portfolio was a thing of the past. But recent developments may have changed that.
Peter Siks,
Investment Coach
Following a dramatic and volatile 2022 with good returns, a lot of this year's commodity performance may be driven by Chinese politics.
Ole S. Hansen,
Head of Commodity Strategy
2023 could be a tough year for currencies but EUR and JPY may have some upside.
John J. Hardy,
Head of FX Strategy
The commodity-heavy Australian market may have a good start to 2023, as the Chinese focus on growth signals demand for Aussie resources.
Jessica Amir,
Market Strategist
From a near-perfect environment for speculative assets before 2022 to the opposite, crypto faces fundamental challenges.
Mads Eberhardt,
Cryptocurrency Analyst