Short recap
Asia lower on risk off
Europe opening
Mnuchin to support steps not tough talk against FX
manipulators
As it hasn’t been working for years
Senate rejected new sanctions against Russia
Not even watered down Obamacare repeal bill can
pass through Senate
Another huge blow to Trump after no VAT and BAT
implementation
Those two got rejected due to the need to overhaul the
whole tax system in US
Equities
NASDAQ down on rotation out of Techs
Amazon hit by cost jumping
UBS cautious despite good wealth management
business
Credit Suisse – profit jumps
Apollo’s new private equity fund raised USD 25 bln
for investments in North America and Western Europe
Airbus not happy with delays caused by Pratt
& Whitney production
Cameco settled with IRS at a fraction of original
claim but heavy fight with CRA is waiting
Any correction in stocks to be triggered by upcoming
tapering? The stock markets were moving higher hand in hand with QEs all
around the world. What’s next?
Few facts:
Had a nice bull market rolling over the years
Market multiples above historical levels
Equities vs fixed income yield differentials are low
M&A activity hitting high
Upcoming tapering
Extremely low volatility will not last
Trump administration not able to deliver
Earnings
Earnings season so far good on weaker USD
Merck, AbbVie – to be watched as
competition is rising
Exxon
Mobil, Chevron
– market expecting a profit print
Bombardier – cash flow, CSeries deliveries and
potential joint venture with Siemens to be questioned
Baker Hughes, Barclays, Goodyear, American Airlines
Bonds
10-yr Trys yield at 2.30% up from 2.28% yesterday
10-yr Bund yield at 0.53% down from 0.55%
yesterday
EURUSD
Down from yesterday on USD buying
Underlying tone stays pro-EUR, US GDP in watch
Support of note 1.1623/21 (10 DMA/23.6% Fibo), 1.1615,
then 1.1580
100/200 HMA may also see some buying
Resistance at 1.1750, 1. 1776 (high), 1.1794 (200 WMA),
1.1810 (38.2% Fibo)
USDJPY
Sitting on 111.00 with likely dip demand around 110.80
Option expiries at 110.80 (USD 1.2 bln), 111.00 (USD 1.4
bln)
Likely to stay within the sight of expiry levels unless
US GDP moves the market heavily
Lots of bids at 110.00
Gold
Durable goods orders and higher USD put pressure on gold
yesterday
Traders see Fed to announce taper in Sep
Resistance at 1261 (61.8% Fibo)
Support at 125 (50.0% Fibo)
10/50/100 DMAs converge to 1250 level
Data/events
US Q2 GDP +2.6% exp
vs 1.4% previous
Some banks revised up expectations on the back of yesterday's much better Durable goods orders
Fed’s Kashkari
(1720 GMT)
Aug 24-26 Jackson
Hole
Sep 7 - ECB
Sep 19-20 FOMC
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
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