Recommending a Strategy -...
Transcript of Recommending a Strategy -...
Market Analysis
Calendar Week 12
Agenda
• Economic Calendar
• Interbank Rates Overnight
• Interbank Rates 3M
• Bonds
• Equities
• News
Economic Calendar – CW 11
Economic Calendar – CW 12
Interbank Rates - Overnight
Interbank Rates – 3M
Bonds
Equities
Index Performance
DAX 1.1%
Dow Jones -0.3%
EuroStoxx 1.9%
S&P/TSX 1.3%
FTSE 100 -2.0%
SMI 1.2%
Nikkei 225 1.1%
Hang Seng 3.2%
Australian all ordinaries 0.4%
Equities – last week
Equities – Sector Performance (Friday)
Fed’s Dot Plot
News - Markets
• stronger than expected US Date and reports of a hawkish think tank reports
suggesting the FED may prepare markets for 4 hikes this year next week
(vs. current dot plot consensus of 3)
• cronyism claims against Japanese PM Abe and MoF chief Aso with the
latter not attending next weeks G20 gathering as a result
• global protectionism factors and concerns about President Trump’s changing of the White House guard
• Loonie also undermined by disappointing Canadian macro releases and a
still cautious BoC
• dovish ECB guidance due to sub-target inflation that was underscored by
downside tweaks to final CPI data
News - Markets
• CHF never really saw strong demand during risk-off trade/flows, and
certainly after the SNB maintained that the Swiss Franc is highly valued
– back down towards 0.9550 vs the USD and near 1.1700 vs the EUR
• Reserve Bank has warned investors that a rise in global interest rates
may impact other asset classes, as major governments shift from net
buyers to net sellers of bonds
• Fed Chair Jerome Powell makes his first rate decision, and it is going to
be a rate hike, that is all but inevitable
• so-called "Rexit" rattled markets and weighed on the US Dollar and stole
the show from the inflation report that came out at the same time
News - Markets
• Yen strengthened on the Moritomo scandal (a cheap sale of land to a
school in which the wife of PM Abe is involved implicated Fin Min Taro
Aso, and he will skip the G-20 gathering)
• after the tensions with Russia moved away from the UK, the focus shifts
to the Irish question in Brexit and the Fed
• Russian Foreign Minister Sergei Lavrov said that Britain's expulsion of
Russian diplomats was unacceptable and dangerous. His words sent the
GBP/USD lower