Mar 29, 2017 - Market Update

Short recap

Asia up

Europe opening higher but with caution

Trump revoking pro-climate regulations

…having fun of all those …exits….? Well, me too.

Grexit, Italexit, Frexit, Germanexit, Brexit…and now:

Scoxit – Scottish parliament said yes to second Scottish referendum

UK Gov will not negotiate about it, thus the vote is just symbolic in nature

Norther Ireland looking at joining Ireland to become a part of EU

Seems to have busy upcoming two years after UK triggering Art 50 today

May to speak at Parliament at 11:30 GMT

Formal Brexit announcement at 12:30 GMT at the latest

As at 12:45 GMT Tusk (EU Council President) holds a press conference

GBPUSD down on unofficial Brexit trigger (to 1.2378 from around 1.2600 yesterday)

Tusk to focus on negotiations terms first, the rest may follow

EURGBP – a sentiment test today as the official letter gets delivered

USD turning the corner primarily on Trys yields expectations, general sentiment what is also reflected in important USD pairs

To keep the momentum we need continuation of good data and attractive tax policy terms

Fischer (Fed) seeing two more hikes as right this year

10-yr Trys yield at 2.42%

10-yr Bunds yield at 0.39%

Tesla – Chinese Tencent owning 5% shares what means a stable long-term relationship and fresh capital stream for Tesla

Roche Holding obtained an approval for multiple sclerosis drug from FDA

Sanofi and Regeneron Pharmaceuticals obtained an approval for dermatitis drug from FDA

Deutsche Bank and Commerzbank positive on S&P credit rating upgrade

On the back of a new law in Germany benefiting senior creditors

More and more bankers working for London based banks are getting nervous about what operations will be moved to EU

What in turn puts a pressure on the banks to keep the skilled and experienced employees from leaving

S&P 500 staying above 2350 support (next 2300)

But below the descending trendline

Valuations weighting on the market

Data

GE: Import Price Index – was up +0.7%

US: Pending Home Sales Index – to rise despite shortage of houses

Speakers:

Evans (1320 GMT)

Rosengren (1520 GMT)

Praet (1650 GMT)

Friday – EU issuing a statement on Brexit to define the guidelines

Apr 4 – EU making a formal statement on Brexit about what they want to achieve

Should you have any questions feel free to contact me anytime.

Good luck Champs!

Mr Hawk

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