Morning Brew January 11 2022
Senior Relationship Manager
Summary: Stocks rebound - Buy the Dip?
Risk made a strong reversal yesterday – after a sharp drop early in the day (up tp 3% in the Nasdaq) it made it to positive territory – if only by 0.05%.
The chief global markets strategist at JPMorgan believes the current sell-off presents a buying opportunity and that going forward, there is "more room for the Fed to surprise on the dovish than hawkish side” acc to Reuters.
The Tech Giants closed mostly positive with Apple at 172.19, Amazon at 3229, Google at 2773 and Tesla at 1058. Nvidia 274 – mostly positive or neutral, Facebook fell 1% against the trend.
Goldman Sachs, Deutsche Bank and JPMorgan now expect four U.S. interest increases this year starting in March, more hawkish than a week ago, Fed funds futures see 3.5 hikes in 2022. US 10 Year yields rose to above 1.8% yesterday before dropping below.
FX moved little, waiting for clues from Powell`s hearing today and the CPI number tomorrow. GBPUSD trades near the 1.36 at 1.3590, EURUSD at 1.1340 and the Japanese Yen at 115.20. EURCHF reached 1.05 again for the first time since November.
Gold and Silver could gain to 1809 and 22.60 again,
Turkey has included corporate foreign currency and gold deposit accounts converted to lira, the measure failed to impress markets and we are still at 13.75 Lira against one USD, the current account balance at 8 could be of interest.
The US reported 1.35 million new coronavirus infections on Monday
Bitcoin tested a break below the 40k but could recover to 42000, confirming the support at 40k level again.
There are no key events on the agenda, Jerome Powell testifies in the Senate at 1600.
The Exchange ICE is no longer issuing Key Information Documents for the the ECX EUA Futures, hence the market will no longer be accessible to Retail clients. Please use the CFD EMISSION instead.
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.