Morning Brew September 15 2023
Erik Schafhauser
Senior Relationship Manager
Résumé: Will Risk sentiment hold into the weekend?
Good Morning
Strong data our of China and a solid ARM IPO boost risk sentiment this morning, Especially the Chinese Retail sales at 4.6% increase rather than the expected 3% was appreciated by traders.
Arm Holdings gained almost 25% from the debut price on Thursday from an IPO price of 51 to 63.59. This could lead the way to more IPO…
Indexees are strong with the US 500 at 4515, the GER40 at5 15925 and the USTech100NAS at 15505.
The European Central Bank raised its key rate to a record 4% on Thursday and revised up its inflation forecast for next year, but with the euro zone economy struggling, it signalled that the hike was likely its last for now.
In the aftermath of the ECB rate decision and solid US Data, the USD Soared and EURUSD came under pressure. Precious metals sold off but recovered mostly. EURUSD traded a high of above 1.0750 yesterday to fall to 1.0630 and recover to 1.0650. Silver fell from 23 to 22.30 only to trade back at 23 now. Fintwit went wild over price discrepancies between the Shanghai and Chicago exchanges. GBPUSD held above the 24 after testing below.
The US United Auto Workers union launched simultaneous strikes at three factories owned by General Motors, Ford and Chrysler.
A market to watch is the real estate market with Swedish Giant Heimstaden Bostad is struggling to refinance and this could have significant impact if not resolved quickly.
Will risk sentiment hold into the weekend?
- Data Today: AU PMI, China, Urban Output & Retail Sales, EU Trade Balance, US NY Fed, Industrial production.
Expiries
Physically Settled Futures
- ADU3 will expire 15 Sep 2023 at 15:00 GMT
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- RFU3 will expire 15 Sep 2023 at 15:00 GMT
- RPU3 will expire 15 Sep 2023 at 15:00 GMT
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- SEU3 will expire 15 Sep 2023 at 15:00 GMT
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- PLV3 will expire 21 Sep 2023 at 15:00 GMT
Expiring CFDs
- EU50SEP23 will expire 15 Sep 2023 at 15:00 GMT
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