Morning Brew May 31 2022
Senior Relationship Manager
Very little movement in the last 24 hours due to the Memorial day holiday with Equity Futures slightly lower and FX mostly unchanged. After the German HICP surprised to the Upside, the US 10 Year Rates jumped by 10 BPS to 2.83
The USD Index is at 101.60, EURUSD at 1.0750 and GBPUSD at 1.2611. Gold and Silver again failed to breach and hold key resistance and fell to 1853 and 21.83.
We are hearing good news out of China with Shanghai lifting Covid restrictions, the production slowly stabilizing and Foxconn looking at more robust supply chains in the 2nd half on this year.
European Union leaders agreed in principle on Monday to cut 90% of oil imports from Russia by the end of this year
Crypto is on the rise this morning with Bitcoin above 31k and Cardano up 13% this morning at 0.64.
Next to Month end volatility we are expecting quite a bit of economic data: Swiss GDP at 9:00, German Unemployment at 9:55 UK Mortgage and Credit data at 10:30, EU HICP at 11:00, Canada GDP at 14:30, Chicago PMI at 15:45 and US Consumer confidence
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.