Morning Brew November 24 2023
Erik Schafhauser
Senior Relationship Manager
Summary: Enjoy Black Friday
Good Morning
Thanksgiving was fairly quiet, markets are not too much changed from Yesterday morning, most interestingly, the US Tech 100 NAS and the GER40 are exactly at the same level at 16000.
10 Year yields are trading at 4.46 and the USD Index 103.70, EURUSD 1.0904, GBPUSD 1.2525 and USDJPY 149.50. Gold and Silver remain at 1992. Silver just lost a full percentage point , possibly pulled lower by oil.
Nvidia may move lower today as itis delaying the launch of a new artificial intelligence chip it designed for China until the first quarter of next year
The German IFO at 10, Canadian Retail Sales at 14:30 and the S&P PMI will be the key economic releases but expect low liquidity as outlined yesterday. During the night to Monday, the Japanese PPIU will be released,
Here some good reads for today by our Strats team:
Bonds: With Europe entering a recession and the ECB remaining on hold, euro-denominated corporate bonds remain at risk. The divergence between financial and corporate junk bond spreads following the SVB crisis suggests euro-denominated junk corporate bonds are trading too rich and within the last ten-year average.
Oil: Crude oil prices remain under pressure with the latest weakness being triggered by OPEC’s decision to delay the meeting originally planned for this weekend until November 30
Options: This article explores options hedging strategies, specifically long puts on QQQ (Nasdaq 100 etf) and a debit put spread on NDX (Nasdaq 100 index option),
Investing with options: hedging the Nasdaq 100
Friday
- Data Japan CPI, German GDP, IFO, Canada Retail Sales, US PMI, Black Friday
- Earnings
Expiries
Physically Settled Futures
NGZ3 will expire 27 Nov 2023 at 08:30 GMT
MGCZ3 will expire 28 Nov 2023 at 16:00 GMT
FLGZ3 will expire 28 Nov 2023 at 16:00 GMT
GCZ3 will expire 29 Nov 2023 at 16:00 GMT
HGZ3 will expire 29 Nov 2023 at 16:00 GMT
KEZ3 will expire 29 Nov 2023 at 16:00 GMT
SILZ3 will expire 29 Nov 2023 at 16:00 GMT
SIZ3 will expire 29 Nov 2023 at 16:00 GMT
TNZ3 will expire 29 Nov 2023 at 16:00 GMT
TTFMZ3 will expire 28 Nov 2023 at 10:00 GMT
UBZ3 will expire 29 Nov 2023 at 16:00 GMT
XCZ3 will expire 29 Nov 2023 at 16:00 GMT
XWZ3 will expire 29 Nov 2023 at 16:00 GMT
Z3NZ3 will expire 29 Nov 2023 at 16:00 GMT
ZBZ3 will expire 29 Nov 2023 at 16:00 GMT
ZCZ3 will expire 29 Nov 2023 at 16:00 GMT
ZFZ3 will expire 29 Nov 2023 at 16:00 GMT
ZLZ3 will expire 29 Nov 2023 at 16:00 GMT
ZMZ3 will expire 29 Nov 2023 at 16:00 GMT
ZNZ3 will expire 29 Nov 2023 at 16:00 GMT
ZTZ3 will expire 29 Nov 2023 at 16:00 GMT
ZWZ3 will expire 29 Nov 2023 at 16:00 GMT
Expiring CFDs
NATGASUSDEC23 will expire 24 Nov 2023 at 16:00 GMT
10YUSTNOTEDEC23 will expire 28 Nov 2023 at 16:00 GMT
30YUSTBONDDEC23 will expire 28 Nov 2023 at 16:00 GMT
COPPERUSDEC23 will expire 28 Nov 2023 at 16:00 GMT
CORNDEC23 will expire 28 Nov 2023 at 16:00 GMT
GASOLINEUSDEC23 will expire 28 Nov 2023 at 16:00 GMT
GOLDDEC23 will expire 28 Nov 2023 at 16:00 GMT
HEATINGOILDEC23 will expire 28 Nov 2023 at 16:00 GMT
SILVERDEC23 will expire 28 Nov 2023 at 16:00 GMT
SOYBEANMEALDEC23 will expire 28 Nov 2023 at 16:00 GMT
WHEATDEC23 will expire 28 Nov 2023 at 16:00 GMT