Morning Brew September 14 2021
Senior Relationship Manager
Summary: Evergrande under pressure - US CPI as last key event ahead of the FOMC
On Friday we saw the Nasdaq 100 and the Dax at the same level for the first time, then both came under pressure and the Dax was able to recover more strongly as ECB member Isabel Schnabel come on the wires stating that the recent rise in Inflation was no immediate cause for action. The Dax is trading at 15727, the Nasdaq 100 15455, S&P 500 4476 and the Dow 34947 (Based on the Future)
The 10 Year US yield is at 1.3260, the USD Index at 92.62, EURUSD at 1.1810 Bitcoin 45250 and gold and silver at 1792 and 23.60.
US Democrats proposed a reversal Donald Trump's tax cuts, including raising the top tax rate on corporations to 26.5% from the current 21%.
Evergrande, the giant Chinese real estate developer remains under pressure with yields on it`s 2025 bond rising to 54% and shares falling to a 6 year low.
A fake press release led to a surge in the value of litecoin – it was falsely announced that Walmart would start accepting the digital currency.
Today`s key event will be the US CPI at 14:30 CET expected at 5.3% YoY and 0.4% MoM, the core at 4.2%, this is one of the last key events ahead of the Fed decision next week.
This evening Apple will hold one of it`s product events and likely release a now iPhone, Earbuds and a new version of the watch.
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.