Morning Brew June 8 2022
Senior Relationship Manager
Markets are see-sawing ahead of the ECP Rate decision tomorrow and the US CPI on Friday.
Indexes initially came under pressure yesterday on a bleak outlook of US retailer Target but closed the day in the green by app 1%. Volumes were slow at about 20% below the recent average.
10 Year Yields felt o below 3 yesterday but recovered to just above. The USD Index failed to rise above the 103 yesterday and is holding at 102.50 EURUSD is trading at 1.0690, GBPUSD at 1.2566 and USDJPY 133.17. EURCHF rose to above 1.04 again. Gold and Silver 1850 and 22.15 in tight range looking for a direction either way.
Oil is holding at high levels with Brent trading at 120.70.
Looking at the ECB tomorrow, the analyst expectation is that there will be now change in rates, the trader expectation based on interest rate futures is a hike of 10 bps .
India raised rates by 50 BPS as expected to combat inflation.
2 US Senators, Cynthia Lummis (Rep) and Kirsten Gillibrand (Dem) , are suggesting to have Crypto trading regulated by the CFTC – Bitcoin rises as the CFTC is deemed less restrictive than the SEC that would be the alternative.
Apple can profit from the EU regulation to use USB C rather than lightning ports from 2024, the stock rises to 148.64 or 1.8%.
Credit Suisse said it was likely to suffer a loss in Q2 the bank announced today.
2 US Senators are suggesting to have Crypto trading regulated by the CFTC Bitcoin can gain on the news to trade at 30500.
Physically Settled Futures:
FBONM2, FBTPM2, FGBLM2, FGBMM2, FGBSM2, FGBXM2, FOATM2 will expire 8th of June at 15:00 GMT.
JGB1M2 will expire 10th of June at 01:00 GMT
ADM2, BPM2, DXM2, E7M2, ECM2, JYM2, M6BM2, MPM2, MSFM2, NEM2, NOM2, RFM2, RYM2, SEM2, SFM2, CUSM2 will expire 10th of June at 15:00 GMT
JP225JUN22, EURCHFRFJUN22, EURCHFRFJUN22, EURJPYRYJUN22, EURJPYRYJUN22, GASOILUKJUN22, GBPUSDBPJUN22 will expire 8th of June at 15:00 GMT.
Latest Market Insights
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.