APAC Daily Morning Brief
Summary: Snapshot to APAC Morning Start
O/N & Levels:
Mnuchin talking 50-100yr bonds again, mentions no plan yet to intervene in the USD. Big miss in US oil inventories -10m a vs. -2.8m e, popping crude up by 165bp. Bojo trying to suspend UK Parliament from Sep 12 - Oct 14, will likely be challenged by courts. Probably a strategy on his part on potential brexit negotiations. Cable down 65bp on the news.
Note we still have bond yields on Insta around similar 1.48% lvls (3yr low), yet note binds at -71bp are all time lows... As are a lot of other bond yields globally. The US is behind the curve. Speaking of the curve, 2/10s are now inverted.
Data light, really all about US 2Q GDP reading at 2.0%e. GER flash CPI may also get some interest
Yuan Fixing will be key, they only bumped it up by 4bp o/n vs. the +34bp on Tue
And again all about Sep 1st implementation & potential noise around that
Latest Market Insights
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.
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