Short recap
Asia in green taking clues from US stocks
Europe opening mixed
Obamacare on the table again next Wed
Mnuchin was out with some details on tax reform
To be revealed soon (again…) and wants to push it
through not waiting for healthcare bill approval
Trump doesn’t like Canadian milk
Despite Canada having USD 400 mln trade deficit in dairy
products
Ontario (Province in Canada) to tax 15% all
foreign property buyers
Kaplan (Fed) is ok with three hikes this year
Kuroda to keep current bond buying
US steel producers to benefit from higher defence
spending
EU equities saw significant outflow ahead of FR
elections
The money can return quickly after market
positive election outcome
Recently we have mentioned that EU stocks trade at 20%
discount to their US peers
French stocks to benefit most under this scenario
SNC-Lavalin Group buying WS Atkins (CAD 3.6
bln)
Deutsche Bank fined USD 157 mln over FX and
Volcker
Danone completed acquisition of WhiteWave Foods
(USD 12.5 bln)
Stays positive on earnings
Tesla recalling 53k cars
Earnings season
Visa – better results yesterday showed that
consumer credit and spending is firm globally
Blackstone – better results on assets selling
during Trump rally
Schlumberger – expecting worse results on rising
costs, markets waiting for an update on drilling activity worldwide
General Electric – markets will question
how efficient the company is (cost cutting, raising profits)
Honeywell International – expecting worse results
on aerospace
Bonds
Cautious ahead of FR elections, keeping the yields low
Despite a small rise in yields as market expects positive
outcome
10-yr Trys yield at 2.24%
10-yr Bund yield at 0.24%
FX
EURUSD – suffered from yesterday’s shooting in
Paris and US yields moving higher
Trading flat ahead of very close FR presidential race
Let’s see whether the event will reflect in more votes
for Le Pen but French are tired of terrorist attacks
To watch options expiries today: EUR 1 bln at 1.0600, EUR
1.27 bln at 1.0700
USDJPY – support at 200 DMA (108.90)
Some selling interest laying around 109.50 level
Commodities
Gold – 3m ATM vols still at the lows
Gold has the room to go lower on risk on election
outcome, lower JPY and higher US yields/USD
After printing the high at 1295 looking at support at
1267 (descending trendline)
Then 1250 (200 DMA) and 1248 (50% Fibo)
Data
EZ: Flash PMI – expecting a small dip
UK: Retail Sales – keep slowing
US: Flash PMI – expecting a small dip
IMF, World Bank and G20 meetings/speakers until Sunday
Trump less aggressive with protectionism
Kashkari (Fed) speaking at 1330 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
May 7 – French presidential elections 2nd
round
May 25 – OPEC/Non-OPEC meeting
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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