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 May 252022
Erik Schafhauser
Senior Relationship Manager
Good Morning,
We are going into a long weekend and the next Morning Brew will come on Monday the 30th of May – Stay safe
Growth stocks had another bad day with the Nasdaq falling more than 2% while the Dow and the S&P fell 0.15% and 0.8%. Snapchat lost 43% of it`s value after the weak outlook, weighing on social media shares. Meta drops 7.6%, Google nearly 5%, Twitter 5.5% and Pinterest almost 24%.
Tesla continues it`s fall, dropping 46USD and close to a 50% decline off the top at 1243. If we breach that level, 550 and 400 would seem the next targets.
Weak housing and PMI data raise worries we are heading for stagflation.
The GER40 is in limbo at 14040, it needs a break above the 14220 for upside potential, 13820 gives some support.
10 Year Yields fell to a low of 2.71 before rebounding slightly to 2.76, the USD Index fell to 101.62 to gain back to 102. EURUSD could breach the 1.07 and GBPUSD remains at 1.2530. The Yen strengthened to below 127 against the USD. The pound was weak due to a decline in the Purchasing Managers' Index to 51.8. The Central Bank of New Zealand hiked by 50 Basis points and gave a hawkish outlook of 3.95% in September 23. The Kiwi gained 0.7%.
Gold and Silver trade at 1860 and 22.00 for real upside potential we need to breach the 1867 and the 22.20, if we fail, 1780 and 21.25 would be likely as Kim points out in his Technical Update.
Bitcoin holds in hibernation mode and we will likely see a severe move soon – the big question is which way.
Reports of human rights violations in China rekindle the discussion of how to interact with China.
The US durable goods orders are the economic release of the day after the GfK came in line with expectations. Tonight, we will see if the FOMC minutes show any signs that the Fed may lean further hawkish or dovish than expected, the earnings of Nvidia and Snowflake that will be closely watched follow.
Expiries
Physically Settled Futures:
NGM2 will expire 25rd May at 19:30 GMT.
ENAM2 will expire 27rd May at 09:30 GMT.
FLGM2, TTFMM2 will expire 27rd May at 15:00 GMT.
Expiring CFDs:
NATGASUSJUN22 will expire 24th May at 15:00 GMT.
10YUSTNOTEJUN22, 30YUSTBONDJUN22
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.