Morning Brew September 7 2022
Senior Relationship Manager
Markets are overall looking for direction. After the long weekend, US Stocks gave up ground but all moved less than 1%. The Dow closed down 0.55%, the S&P 500 lost 0.41%, and the Nasdaq down 0.74%. We are a bit directionless as it seems to be unclear what to focus on in the near term.
The USD Index is elevated at 110.50 EURUSD 0.9890 and GBPUSD 1.1480 and Gold and Silver 1695 and 17.96. USDJPY soared trough 144 to trade 144.14 now. One would expect comments out of the BoJ at any moment.
The Fed is overall seen as more hawkish than other central banks.
Liz Tuss took over as the new PM of the UK and said she would take immediate action on high energy costs and economic worries – so far the GBP is not impressed,
Chinese Imports as well as exports came out below expectations.
After the CFO of Bed Bath and Beyond fell to his death last Friday, shares lost 18%.
Today there will be 4 Fed speakers, and the Beige Book released, this evening Apple will present it`s newest product range and political comments on stimulus measures can come at any moment.
Tomorrow the ECB will be the key event
Today: De Industrial Orders, EU and US PMI,
Wednesday: AU GDP, China Exports, DE Industrial Output, EU GDP, CA Care Decision,
Thursday; CH Unemployment Rate, ECB Rate decision, US Jobs data
Friday: CN PPI, CA Unemployment rate
Physically Settled Futures:
White Sugar - Oct 2022 (WV2) will expire 7th Sep at 9:00 GMT
Euro-BONO - Sep 2022 (FBONU2) will expire 7th Sep at 12:00 GMT
Euro-BTP - Sep 2022 (FBTPU2), Short-Term-Euro-BTP - Sep 2022 (FBTSU2), Euro-Bund - Sep 2022 (FGBLU2), Euro-BOBL - Sep 2022 (FGBMU2), Euro-Schatz - Sep 2022 (FGBSU2), Euro-BUXL - Sep 2022 (FGBXU2), Euro-OAT - Sep 2022 (FOATU2), will expire 7th Sep at 1500 GMT
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.