Erik Schafhauser Zürich Erik Schafhauser Zürich Erik Schafhauser Zürich

Morning Brew January 27 2022

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Summary:  Yields soar, Equities sell off and USD strengthens after Powell turns more hawkish than hoped in the press conference after the rate decision in line with expectations..

Good Morning

The Webinar ont he Q1 Outlook takes place today at 13:00 CET, sorry for the confusion! Fuelling the Energy Crisis Sign up here: Upcoming events and webinars | Saxo Group (

The initial reaction to the FOMC was friendly yesterday, late in the press conference where Powell appeared more Hawkish than the market had hoped, most of the gains evaporated, rates jumped and the USD gained.

The number of implied rate hikes increased from 4 to 4.3 on Powel stating the Feds course remained open and flexible. That was initially interpreted as a dovish loophole but on his statement that inflation has gotten worse in the last month and that the policy would have to be adjusted if it rises further. : THERE IS QUITE A BIT OF ROOM TO RAISE INTEREST RATES, THIS IS GOING TO BE A YEAR IN WHICH WE MOVE STEADILY AWAY FROM HIGHLY ACCOMMODATIVE POLICY

Over night Equities fall further, Futures show the current levels: S&P500 -1.4% @ 4280, Dow -1% @ 33700, Nasdaq –1.7% 13900. The Dax and Eurostoxx are down 2.6% and 3% but bear in mind that that is calculated against the Index close at  17:30.

10 year rates rise to 1.84 after hitting 1.88 yesterday, the USD Index rises to 96.67. EURUSD falls to the lower end of the range at 1.1215 and GBPUSD 1.3425. Gold and Silver come under pressure and fall to 1812 and 23.20.  Bitcoin rose to above 37k yesterday but retreats to 35500.

Oil gained yesterday with the broader market but also receded somewhat late in the day.

Today I expect some seesaw movement until the meeting has been digested then the US GDP and Durable goods  will come into focus

Shares of Tesla fell about 5% in the aftermarket on news that the company would not reach max capacity in 2022 due to supply-chain limitations. Results were above expectations and Elon Musk sees growth of more than 50% for 2022.

Deutsche Bank this morning exceeded expectations with a net profit of €145 million against an expected loss of €130 million

China weighs breaking up Evergrande to contain property crisis acc to Bloomberg News.

Key Economic Data:

Thursday: US Durable Goods orders and GDP

Friday: Swiss KOF, EU Business Climate, Personal Income, US PCE, University of  Michigan Consumer Confidence.


Thursday: Diageo, Danaher, Apple, Visa, LVMH, Mastercard, Comcast, McDonald's, SAP SE, Blackstone,

Friday: Charter Communications, Chevron Caterpillar

Trade safely.



The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.