Short recap
Asia lower
Europe opened mixed
GBP up yesterday as market speculates that snap
elections can remove the political uncertainty
And give a stronger mandate for May in Brexit talks
Pence – NK to expect an overwhelming and effective
response
China shadow banking back at full speed
China eased capital flow controls
Foreign investment in Canada hitting high of CAD 39 bln
on M&A
Geopolitical events and upcoming French
election driving investors to safe heavens (gold, bonds)
FTSE 100 below recent lows on stronger GBP
BMW see China sales to grow 10% in 2017 while
globally should rise 5-5.5%
Credit Suisse still in a clash with its
shareholders over top execs bonuses
Earnings season
Goldman Sachs disappointed on trading revenue what
impacted markets yesterday
Lower trading activity was to blame as the bank
doesn’t benefit from lending as competitors do or additional trading related
business.
Is Goldman Sachs loosing a market share?
Morgan Stanley – expecting positive surprise on
more active bond trading and cost cutting
American Express – expecting a negative surprise
due to competition margin squeeze and rising costs
BlackRock – more than profit report markets will
scrutinize cost cutting and reorganization plans
Especially at active stock picking division
Others: Qualcomm, CSX, Abbott Laboratories,
eBay, U.S. Bancorp
Bonds
10-yr Bund yield at 0.16%
10-yr Trys yield at 2.18%
Touched 2.1629% - the lowest since Nov 2016 elections
The area of support is around 2.1346% (38.2% Fibo)
The levels around/below 2.20% may be a good place to
start to sell bonds
But the appetite for safety stays strong for now
Don’t forget about Fed hiking and trimming bond
portfolio
George (Fed) supporting bond taper this year
June hiking priced at 43%
EURUSD daily – getting crowded
GBPUSD daily – no risks of Brexit negotiations removed
More to go? Will the 1.2800 hold? How long?
The move occurred on very thin liquidity
After surprise announcement
Data
EZ: CPI – no surprise expected, should stay in line
Beige Book (Fed)
Hansson (ECB) speaking (0800 GMT)
Coeure (ECB) speaking (1200 GMT)
Praet (ECB) speaking (1430 GMT)
Rosengren (Fed) speaking (1630 GMT)
Upcoming:
Apr 23 – French presidential
elections
40% still undecided
Official results at 1800 GMT
Exit polls from midday but on BE and CH media only
More precise estimates around 1600 GMT
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
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