Erik Schafhauser Zürich

Morning Brew August 24 2021

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Summary:  USD has the weakest day in months, Stocks gain on dovish hopes


Good Morning

Yesterday,  the Dollar had the weakest day in months and equities treaded very friendly. The Nasdaq gained 1.5%, the S&P500 0.85 and the Dow 0.6%.

The USD Index fell to below 93 as EURUSD rose to 1.1740, GBPUSD to 1.3740 Gold rises above 1800 and is near the resistance at 1810. If broken, 1840 would be the next target. Silver came off the lows to trade at 23.60, a break above the 24 is necessary for a new signal. Bitcoin gives up ground to just below 50k.

The U.S. FDA granted full approval to the Pfizer/Biontech COVID vaccine, both shares rise, Pfizer by 2.5% and Biontech 9.6%. Trillium Therapeutics gained 188.8% after Pfizer agreed to buy the company.

Samsung is looking to invest more than 200 bio into semiconductors, Biotech, AI and Robotics over the next three years.

The U.S. SEC has started to tighten disclosure requirements to Chinese companies.

The moves yesterday were caused by hopes of a more dovish Jackson Hole conference, after Kaplan sounded a little cautious and a slowdown in the Chicago PMI. As we expect the markets react fairly strongly to any dovish or hawkish news.

There is little on the Agenda today except the US New Home Sales so there is lots of room for comments to test the market.

Tomorrow I will be off, most significant event there will ne the German IFO and US durable goods order. Given the supply chain issue, durable goods could come lower and provide a dovish signal.

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

24 Aug 2021

08:00

Germany

GDP Detailed QQ SA

Q2

1.5%

24 Aug 2021

08:00

Germany

GDP Detailed YY NSA

Q2

9.6%

24 Aug 2021

16:00

United States

New Home Sales-Units

Jul

0.690M

25 Aug 2021

10:00

Germany

Ifo Business Climate New

Aug

100.4

25 Aug 2021

10:00

Germany

Ifo Curr Conditions New

Aug

100.8

25 Aug 2021

10:00

Germany

Ifo Expectations New

Aug

100.0

25 Aug 2021

14:00

Brazil

IPCA-15 Mid-Month CPI

Aug

0.82%

25 Aug 2021

14:30

United States

Durable Goods

Jul

-0.2%

26 Aug 2021

03:00

South Korea

Bank of Korea Base Rate

Aug

26 Aug 2021

03:30

Australia

Capital Expenditure

Q2

2.5%

26 Aug 2021

08:45

France

Business Climate Mfg

Aug

109

26 Aug 2021

14:30

United States

GDP 2nd Estimate

Q2

6.7%

26 Aug 2021

14:30

United States

Initial Jobless Clm

21 Aug, w/e

350k

27 Aug 2021

01:30

Japan

CPI, Overall Tokyo

Aug

27 Aug 2021

03:30

Australia

Retail Sales MM

Jul

-2.9%

27 Aug 2021

14:30

United States

MM

Jul

0.3%

27 Aug 2021

16:00

United States

U Mich Sentiment Final

Aug

70.9

(Refinitiv)

 

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