Morning BrewAugust 2 2023
Erik Schafhauser
Senior Relationship Manager
Summary: Fitch Downgrades US - Little data today
Good Morning,
August starts interesting with Fitch delivering an unexpected source of volatility.
The Rating agency Fitch cut the US rating from AAA to AA+ weighing Equities after they had started the month weak already.
The US500 is trading at 4556, off the recent high above the 4600, the US Tech NAs 100 15615 and the US 30 us 35520. The GER40 dropped significantly to 16140. Caterpillar and AMD could surprise positively while Uber disappointed and slid over 5%. Cat rose 8.8% and 2.7%.
Kim put out at technical update on the US indexes yesterday pointing out the rise was stretched: Technical Update - S&P500 Nasdaq100 uptrends stretched. Indicators say correction looming
The USD Index gained to above 102 as US 10 year yields crossed to above again, it is currently at 102.12, EURUSD 1.0990, GBPUSD 1.2770 and USDJPY 142.80.
Gold and Silver are traiding with large swings, but Gold remains supported by the 50 day moving average so far. Gold is atraidn at 1949.15 and Silver 24.35.The Technical views: Copper broke key resistance confirming uptrend. Currently testing 400 the much needed metal could rally to 420 Gold and Silver range bound. Break out needed for direction
There is little in terms of key data or earnings on the Agenda today, tomorrow and Friday will be the big days with the Bank of Englands rate decision where traders are 65/35 in favor of a 25 BPS hike vs 50 BPS, Apple and Amazon will report earnings and on Friday we are expecting the Nonfarm Payroll
Wednesday August 2nd
Data: Nothing Key
Earnings:CVS Health, Humana, Kraft Heinz, teva. Paypal, Shopify, Qualcomm, Oxy, Robinhood, Etsy
Thursday August 3rd
Data: AU Retail Trade, Bank of England Rate decision, International Services PMI,
Earnings: Warner Bros, Wayfair, Conocophilips. Expedia,. Moderna, Hasbro, Amazon, Apple, Coinbase, AirBNB, Cloudflare,
Friday August 4th
Data: DE, Industrial Orders, Consumer goods, UK PMI, US Nonfarm Paytrolls
Earnings:Nikola, Fisker, Enbridge,