Morning Brew June 4 2024
Erik Schafhauser
Senior Relationship Manager
Résumé: Watch the Swiss CPI and US Yields
Good morning
Topline numbers looked boring yesterday as the Dow closed down 0.30%, the S&P up 0.11% and the Nasdaq up 0.56% but it was an exciting day for traders and a software update gone wrong caused faulty prices to be distributed, Berkshire Hathaway and Barrick Gold at one point were shown to be down 99.97% and 98.54% acc to Reuters Data.
Nvidia gained 5% on the new AI Platform announced for 2026. Most Tech stocks except for Tesla and Microsoft could gain. Gamestop gained more than 20% due to social media activity. Koen wrote on how covered calls can be employed: This article provides a comprehensive guide to using covered calls for generating additional income with Apple (AAPL) shares. It covers setup steps, potential outcomes, management tips, and key considerations for strike price and expiration date selection, all aimed at optimizing returns while managing risks.: https://www.home.saxo/content/articles/options/mastering-covered-calls---a-strategic-guide-for-apple-investors-03062024
Overnight, markets are quiet but the uncertainty after the Indian Election cause the Nifty 50 to lose nearly 6%
The ISM Manufacturing PMI disappointed yesterday showing 48.7 while the expectation was 49.6, this caused yields to fall to 4.40, the USD Index dropped to 104.10. EURUSD is trading at 1.09, GBPUSD 1.28 and USDJPY 156.12. Take a look at Charu`s chartkook: Weekly FX Chartbook
Gold and Silver are consolidating at 2347 and 30.60, Oil more than 3% fell on worries there may be an oversupply.Bitcoin and Ethereum seem in one of those sideway phases again getting ready for the next sharp move.
Today we are expecting data of medium importance, the most important one in Switzerland likely the CPI at 8:30 CET as key input for the SNB rate decision on June 20. This is one of the most interesting rate decisions as rate futures are currently at even odds for no change and a cut by 25 Basis points. The next big decisions are the bank of Canada tomorrow currently at 85% for a cut and the ECB on Thursday with 95% for -25 BPS.
Trade safely!
Tuesday
- Data: Swiss CPI, DE Unemployment, US Factory Orders, JOLTS Job Openings
- Earnings: Ferguson, Crowdstrike, HP,
Wednesday
- Data: International PMI, Bank of Canada Rate decision
- Earnings: Brown-Forman, Lululemon, Dollar Tree Campbell
Thursday
- Data: DE Industrial Orders, ECB Rate decision, US Initial Jobless claims.
- Earnings: Nio, DocuSign, Samsara, Meituan
Friday
- Data: CH FX Reserves, EU GDP, US Nonfarm Payroll