Short recap
Asia lower
Europe opening higher, UK lower but heading lower now
Markets getting ready for French elections this
Sunday and developments around North Korea
Need some risk events to go away to focus on fundamentals
and earnings season again
Trump congratulated Erdogan in a call
Appreciated Turkey’s support in Syria attack
Mnuchin smoothed out Trump’s comments against
strong USD in a short term
Strong currency in a long term reflecting strength and
confidence in the economy
But may hurt exports short term
Admitted that health care bill stop delaying tax
reform discussions
US fully supporting Japan’s security
Japan appreciates all options against North Korea on the
table
Chinese real estate prices keep rising
Despite cooling measures
Fed’s Fisher glad about muted market reaction to
potential taper
Stocks
Genentech (Roche Holding) received approval from
FDA on bladder cancer drug
Volkswagen positive on China sales grow this year
Wal-Mart looking to enter the online fashion world
by Bonobos acquisition
To face competition from Amazon.com
Berkshire and Juwai.com working together to
help Chinese to buy properties in US
Boeing keeps laying off employees
M&A in US telecom industry coming as the ban
will be lifter in the coming days
Earnings season
Mostly US names reporting but Europe should bring more
positive surprises
Need very strong earnings to push equity markets higher
Goldman Sachs – expecting a positive surprise
supported by investment banking and bond trading. Markets also waiting for
insides about the use of data and technology to be more efficient and
profitable.
Bank of America – expecting positive results based
on increased trading and rate hikes
UnitedHealth Group – should benefit from clients
leaving Obamacare but lots of uncertainty after Trump lost the healthcare vote
IBM – not to surprise the market on a positive
note as the company is still turning around
Johnson & Johnson – investors are curious how
the company is coping with Obamacare repeal defeat, ongoing Actelion
acquisition (USD 30 bln) and future plans
Yahoo – let’s check the last earnings report
before getting acquired by Verizon
Bonds
GE-FR spread at 72 bps
Markets waiting for French elections results
Hedging started to go through the market last week
10-yr Trys yield at 2.25%
10-yr Bund yield at 0.19%
EURUSD – support 1.0566 (23.6% Fibo)
Resistance 1.0706 (38.2% Fibo)
Buyers sitting in 1.0550-1.0600 area
USDJPY – Mnuchin setting support line for the
cross
Strong support at 108.82 (200 DMA) holding
DXY – support at 100
Resistance 101 (76.4% Fibo/100 DMA)
Gold – looking at 1295/1300 resistance; 1315 (Fibo
76.4%)
Likely to correct first to 1263/1270; 1278 (Fibo 61.8%)
Reacting to retracing of JPY and bond yields
Oil – recent rally was supported by strong
short-covering with few new longs
Data
Fed’s George to speak
Upcoming:
Apr 23 – French presidential elections - still 40% of voters undecided
Apr 29 – EU Summit to sign off the Brexit negotiations
guidelines – until then we won’t have clearer EU position on Brexit
May 7 – French presidential elections 2nd
round
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where despite
this disclaimer someone would consider this material as an investment advice.
All rights reserved ©2016. Contact: landoftradingATgmailDOTcom
Posts
0 comments:
Post a Comment