Senior Relationship Manager
Summary: Tesla Hype driving markets higher
Good Morning.
News of the day yesterday was Hertz which announced to purchase 100k Tesla vehicles sparking a surge in Tesla’s stock price, sending the valuation to above 1 Trio USD for the first time and adding 100bio in market cap to Tesla with a 4.2 bio transaction. Talk about leverage.
The Dow as well as the S&P 500 hit new highs and European Equities are also looking friendly with the Dax at 15620 and the Eurostoxx 50 at 4194.
The German IFO disappointed yesterday weighing on the EUR, the EURUSD fell to currently 1.1605 and GBPUSD remained little changed at 1.3760. That let the USD index increase a little. The Turkish Lira was able to stabilize it`s decline for now after President Erdogan tried to deescalate the tensions he caused late last week. Gold and Silver are trading calmly at higher levels, Gold above the 1800 at 1805 and Silver at 24.50.
Bitcoin remains below the recent high looking for direction, currently trading at 62300.
UBS beat expectations today with Q3 earnings at USD 2.27 bio vs an expectation of USD 1.6 bio. Pre-tax profit for the investment banking division jumped 32%. Novartis is considering to sell Sandoz
European Energy ministers are meeting today to consider ways to deal with the energy crisis, possibly affecting energy prices through the day.
Watch out for earnings by UPS, AMD, GE, Microsoft, 3M, Alphabet, Visa, Twitter, Robinhood and others before and after the close, key economic data will be the US consumer confidence at 16:00 CET.
Expiries
Physically Settled Futures:
NGX1 will expire 27th October at 15:00 GMT
EMAX1 will expire 28th October at 09:00 GMT
HGX1, RRX1, XKX1, ZSX1 will expire 28th October at 15:00 GMT
Expiring CFDs:
GASOLINEUSNOV21, HEATINGOILNOV21, SOYBEANSNOV21 will expire 27th October at 15:00 GMT
CHINA50OCT21, INDIA50OCT21, SINGAPOREOCT21, TAIWAN95OCT21 will expire 28th October at 02:00 GMT
OILUKDEC21 will expire 29th October at 15:00 GMT
Trade safely!!
AI: The good, the bad, and the bubble
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Steen Jakobsen,
Chief Investment Officer
The emergence of advanced AI systems is by far the most surprising event this year, turning everything upside down, while risks and benefits are debated. AI will also become an arms race between the US and China.
Peter Garnry,
Head of Equity Strategy
As China navigates global fragmentation, its cycle of technology application, productivity enhancement, and growth is threatened by US breakthroughs in generative AI, limited computing power, and geopolitical tensions.
Redmond Wong,
Market Strategist
Japan’s expertise in semiconductors and robotic integration could be the foundation of AI dominance. Combining two of this year's themes, Japanese equities and artificial intelligence, brings a wave of opportunities.
Charu Chanana,
Market Strategist
The AI fever has turned the technology into a darling, pushing crypto further into no-man’s-land. There are striking similarities between AI and crypto, and if these are to come full circle, AI won't be spared for bubbles.
Mads Eberhardt,
Cryptocurrency Analyst
Stocks related to artificial intelligence (AI) have appeared on investors' radars. Expectations are high, but it may be necessary to consider how to get exposure to AI in a diversified way.
Hans Oudshoorn,
Trainer Academy
The USD is on its back foot as markets celebrate an eventual Fed rate peak and steady long US yields. The stakes are even higher for the Japanese yen if longer major sovereign yield curves have to price in economic acceleration.
John J. Hardy,
Head of FX Strategy
While commodities, broadly speaking, have faced some tough months, a partial reversal during June could signal that the asset class is getting back on its feet with energy holding up and precious metals with upside potential.
Ole S. Hansen,
Head of Commodity Strategy
As inflation remains high central banks face hard decisions about whether they should keep hiking interest rates or stop. Meanwhile, the rise of AI creates bubble-like conditions that only make the decision harder.
Althea Spinozzi,
Senior Fixed Income Strategist