Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
You can access both of our platforms from a single Saxo account.
Morning Brew April 1 2022
Erik Schafhauser
Senior Relationship Manager
Summary: So far 2022 has been full of surprises we`ll see what Q2 brings
Good Morning,
Welcome to April and the second quarter of 2022.
Historically, April is a good months for Equities, since 2006 the S&P gained in April 15 of o 16 times before the classic “sell in May” and go away” kicks in.
Markets lost confidence yesterday as negotiations between the G7 and Russia on the delivery terms for energy products – as of now it looks like Europe may have to go without for a while. Indexes lost app 1.5% yesterday, the USD Index rose to above 98 again and is currently at 98,47 as EURUSD lost sharply to 1.1050 on news Putin ordered the acceptance of Ruble only. Gold and Silver rose to currently 1937 and 24.80, Gold needs to break the 1950 for further potential.
Oil fell on a huge US release of strategic reserves and Bitcoin fell below 45k on regulatory fears.
Negations between Ukraine and Russia are set to continue today and will be closely monitored along with the Non Farm payroll at 14:30 today. Expectation for the nonfarm Payroll is 490k and a jobless rate of 3,7%. A “better” number would be worrisome as it would indicate higher wage inflation.
The Chinese PMI came at a disappointing 48.1 and Ford as well as GM are forced to halt production next week on lack of parts.
According to Reuters, an options trade by a JPM Fund added weight to risk sentiment with a sale of about 44,000 June calls and the purchase of an identical number of June put spreads, that would break even if the S&P 500 fell more than 5% .
Today we are expecting a huge amount of economic data; The Swiss CPI at 8:30, International PMI
9:00 France and Turkey
9:15 Spain
9:55 Germany
10: 00 EU and Greece
10:30 UK
11:00 Norway
15:45 US
In addition:
EU HICP at 11 an the US ISM Prices paid at 16:00 CET.
We are up for an interesting month, stay on your toes.
Latest Market Insights
Quarterly Outlook 2024 Q3
Sandcastle economics
-
Bonds: What to do until inflation stabilises
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.
-
Equities: Are we blowing bubbles again
Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.
-
FX: Risk-on currencies to surge against havens
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.
-
Commodities: Energy and grains in focus as metals pause
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.