Erik Schafhauser Zürich

Morning Brew July 7 2021

Morning Brew 1 minute to read
Erik Schafhauser

Senior Relationship Manager

Good Morning

10 Year Yields and blue chip stocks fall, tech gains while the USD Index rises ahead of the Fed Minutes

Weak German Data in the form of industrial orders (-3.7% vs 1% expected) and a lower than expected ZEW sentiment (63.3 vs 75.2 expected) caused the EUR and the Dax to slip yesterday. The ISM in the US came weak,  the S&P 500 and the Dow Jones lost 0.2% and 0.6%, the Nasdaq closes up 0.2% at a new record.

The USD Index rises from 92 to 92.65 before slightly receding to 92.50, the 10 year Yield falls to below 1.4, currently 1.3615.

Bitcoin continues to meander around the 3k level and to have a clear direction, a clear break of 20 or 40000 is required.

Gold and Silver gave up some of their gains yesterday but are off the lows currently 1800 and 26.30. EURUSD is at 1.1825 and Cable at 1.3810.

 There are no economic events of great significance on the agenda today but focus will be on the minutes of the last FOMC meeting. There are two key questions:

  • When and by how much can rates be expected to rise?
  • How intense was the discussion on tapering and what is a likely timeframe for the FED to stop their asset purchases

A hawkish interpretation of the minutes should strengthen the USD. If the USD Index breaks above the 92.75 it should head for the 93.44 level we saw in March. For Equities the tapering question may even be more important than  the dot plot.

You can now trade Crypto Currencies as FX Cross:

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Please be aware that cryptocurrencies are very volatile. Losses can exceed deposits. This marketing material does not constitute an offer or a recommendation to invest. Consult the risk disclosure statement on our website before investing

We offer ETHUSD; BTCUSD, LTCUSD, ETHEUR, BTCEUR and LTCEUR as long or short.

Please remember that cryptocurrencies are very volatile and make sure to check the trading conditions before starting to trade.

Other Headlines:

Nomura is planning to halt  parts of prime brokerage business after the Archego disaster

Samsung Electronics stated it is expecting 53% rise in operating profits in Q2 on high chip demand and rising prices.

The U.S. Defense Department stepped back from the  cloud computing agreement with Microsoft to include other cloud providers as well.  Amazon rose 4.7%.

Didi lost 19.75% yesterday after the Chinese watchdog ordered the company to halt  additional downloads of its app due to privacy concerns. Stocks closed at 12.49 vs the IPO price of 16.65. Other NYSE traded Chinese shares also lost.

Local Start Date

Local Time

Country/Region

Indicator Name

Period

Reuters Poll

7 Jul 2021

05:00

New Zealand

Reserve Assets Total

Jun

7 Jul 2021

08:00

Germany

Industrial Output MM

May

0.5%

7 Jul 2021

08:00

United Kingdom

Halifax House Prices MM

Jun

7 Jul 2021

08:00

Norway

Reserve Assets Total

Jun

7 Jul 2021

08:45

France

Reserve Assets Total

Jun

7 Jul 2021

09:00

Switzerland

Forex Reserves CHF

Jun

7 Jul 2021

14:00

Brazil

Retail Sales YY

May

16.45%

8 Jul 2021

01:50

Japan

Current Account NSA JPY

May

1,820.4B

8 Jul 2021

14:00

Brazil

IPCA Inflation Index MM

Jun

0.60%

8 Jul 2021

14:30

United States

Initial Jobless Clm

3 Jul, w/e

350k

9 Jul 2021

03:30

China (Mainland)

PPI YY

Jun

8.8%

9 Jul 2021

03:30

China (Mainland)

CPI YY

Jun

1.3%

9 Jul 2021

08:00

United Kingdom

GDP Est 3M/3M

May

3.9%

9 Jul 2021

08:00

United Kingdom

GDP Estimate MM

May

1.5%

9 Jul 2021

08:00

United Kingdom

GDP Estimate YY

May

25.9%

9 Jul 2021

08:00

United Kingdom

Manufacturing Output MM

May

1.0%

9 Jul 2021

08:00

Norway

Consumer Price Index MM

Jun

0.4%

9 Jul 2021

08:00

Norway

Consumer Price Index YY

Jun

2.9%

9 Jul 2021

09:00

Turkey

Current Account Balance

May

-3.025B

9 Jul 2021

14:30

Canada

Employment Change

Jun

195.0k

9 Jul 2021

14:30

Canada

Unemployment Rate

Jun

7.7%

12 Jul 2021

01:50

Japan

Corp Goods Price MM

Jun

12 Jul 2021

01:50

Japan

Corp Goods Price YY

Jun

12 Jul 2021

01:50

Japan

Machinery Orders MM

May

12 Jul 2021

01:50

Japan

Machinery Orders YY

May

12 Jul 2021

08:00

Denmark

CPI YY

Jun

12 Jul 2021

China (Mainland)

Total Social Financing

Jun

2,800.00B

12 Jul 2021

China (Mainland)

M2 Money Supply YY

Jun

8.2%

12 Jul 2021

China (Mainland)

New Yuan Loans

Jun

1,800.0B

(Refinitiv)

 


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