June 23, 2017 - Market Update (Tough on Qatar, Soros: UK & EU may remarry, Morgan Stanley moving to Frankfurt/Dublin, Biotech on fire, FX option ruling EURUSD, USDJPY, Bonds on summer vacation)

Short recap

Asia flat

Europe opening lower

Tough conditions for Qatar to comply within 10 days

Will spur the risk off

Carlyle Group – Fed to keep hiking, no problem from higher rates

Soros on "Brexit In Reverse" - if all goes well UK & EU may remarry even before divorce  link

North Korea firing again

Equities

Morgan Stanley to move EU HQ and broker-dealer operations to Frankfurt and asset management to Dublin

Airbus & Boeing to face competition from RU, CN and JP in the future

Qatar Airways looking to buy 10% of American Airlines

US House not happy with Deutsche Bank’s rejection to share information about Trump’s finances with respect to Russia investigation

Biggest US banks passed the stress test

Biotech on fire without any particular reason

Index breaking through strong resistance

Few names to check: Gilead Sciences, AbbVie, CSL, Biogen, Amgen, Shire, Genmab, Celgene, Regeneron, Vertex, Alexion, Incyte (first three worth of looking at)

BlackBerry reporting Q1 earnings with focus on turnaround

Bombardier cutting more than 2k jobs in GE

Tesla to build a factory in China

Foxconn planning a USD 10 bln display factory in US

Bonds

10-yr Trys yield at 2.16% - not reacting to Bullard, more focussing on balance sheet reduction

10-yr Bund yield at 0.26% - no change from yesterday

EURUSD

No clear direction

Still stuck close to large option expiries strike levels within 1.1100-1200 range

Next week there are not that many, so we should be able to see a bit more moves

Expiring today EUR 1.97 bln at 1.1190-1200

Market watching interest rates differentials and ECB/Fed speakers

Next resistance at 1.1187 (23.6% Fibo)

10 DMA at 1.1175

Gold

Consolidating towards 1255 (50.0% Fibo)

Support from 100 DMA at 1249

Seen some risk off flows from energy

As prices of oil are very vulnerable on OPEC (in)action

Data/Events

ECB’s Draghi at European Council meeting

Fed’s Bullard (1515 GMT)

Fed’s Mester (1640 GMT)

Fed’s Powell (1815 GMT)

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

Good luck Champs!

Mr Hawk

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