Senior Relationship Manager
Summary: Bostic saves the day
Good Morning,
Please be aware that despite it being the first Friday of the Month, there is no Non-Farm Payroll release today, that will be next week. Today global PMI as well as the Non—Manufacturing ISM will be the most important, also fed speakers are moving the market.
Yesterday, dovish comments by Atlanta Federal Reserve President Raphael Bostic saved the day. He said he preferred slow and steady moved by the Fed which implies he does not favor a 50 bps hike at the March meeting. Indexes had been trading lower before but closed in the green on those comments, the breach of the 10 year yield beyond the 4% had sparked some risk off sentiment yesterday.
US Indexes gained 0.7-1% yesterday and the USD Index dropped from a high of 105.20 to now 104.80. EURUSD made it back above 1.06 to 1.0615, GBPUSD 1.1960 and USDJPY 136.50. Gold and Silver rose to 1845 and 21.05.
Tesla fell more than 5% to close the day at 191 on the disappointing Investor day
Crypto Bank Silvergate Capital Corp came under pressure with shares falling more than 50% after delaying its annual report and said it was evaluating its ability to operate . This also dragged crypto lower with Bitcoin down app 5%.
On Sunday the Chinese Parliament is meeting and will set the growth target for 2023. Depending on the published number the amount of required stimulus measures can be estimated.
U.S. Secretary of State Antony Blinken said Russia cannot be allowed to wage war with impunity
Friday
Data: International PMI, ISM Services
Earnings: Canadian Natural Resources
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy