Short recap
Asia up on dovish feeling Fed (stocks, bonds and
commodities up)
Europe opening flat
ECB’s Nowotny – some room to reduce asset purchase
from Jan 2018 but not stopping them
EU warned US over new sanctions against Russia as
energy security is on the table
UK’s Rudd promised to keep access for EU workers
UK’s car industry production down 14% in June
US New home sales still growing but at a softer pace
FOMC – on summer vacation
Market feeling a dovish bias and lower likelihood of
another 2017 hike
Balance sheet reduction to start relatively soon (market
expecting announcement in Sep)
Repeated that inflation to rise to 2%
But admitted undershooting of 2% target
Equities
Daimler thinking about splitting some divisions
Third Point betting on Alibaba again as
they see opportunities
No new sales of petrol/diesel cars in UK from 2040
Deutsche Bank to list its asset management arm but
not before late 2018
Foxconn to build a new plant in US (3000 new jobs)
AGCO buying farm equipment division from Monsanto
Earnings
Samsung pretty comfortable with chip outlook,
reported a record profits
Facebook doing well in mobile ads (up 50%), while
strengthening its attraction as a social media
Amazon.com – to report better revenue supported by
retail and cloud. Hungry a bit? What about the Whole Foods Market acquisition –
any hints?
Procter & Gamble – organic sales should help
the numbers
Celgene – investors are positive, would like to
learn more on licensing deal with BeiGene
Cameco – results to be impacted by still ongoing
fall in uranium prices. Market may also be interest in the progress/resolution
of Tepco issue?
MasterCard – investors are positive
Intel – investors are positive by data center
business will scrutinized
Twitter – market is expecting a decline in revenue
on user growth stagnation
Deutsche Bank – investor worry about the results
as the bank undergoes restructuring, Brexit and Trump Russian ties. All of that
is also combined with ECB’s investigation of Qatar royal family and Chinese HNA
who are bank’s largest shareholders.
Bonds
10-yr Trys yield at 2.28% (up)
10-yr Bund yield at 0.55% (down)
DXY
Offered tone, sentiment getting more bearish
As cautious Fed and political mess in Washington pressure
USD
Close to support levels
EURUSD
Marching higher, no clear top yet, outside day reversal
Watching: 1.1750, 1.1794 (200 WMA), 1.1810 (38.2% Fibo)
and then 1.20/2200
Likely 1.1800 will be respected as ECB to turn dovish
soon too
On falling inflation and missing wage growth
So the 1.1750 and 200 WMA may be seen as the top
Support of note 1.1615, then 1.1580
USDJPY
Pressured by lower US yields, long liquidate seen
Sitting on 111.00 with likely dip demand around 110.80
Option expiries between 111.00-111.30 (more than USD 1.7
bln)
Life insurers with lower interest in foreign bonds
Has some room to get and stay above 114.00 toward year end
Gold
Resistance at 1264 (38.2% Fibo)
Support at 1255 (50.0% Fibo)
Watch also ascending and descending trendlines
As it trades above 1250 (100 DMA) we may see
opportunities from a long side
Not only in spot but also in gold mining stocks
On the back of low inflation, weak USD and Trump
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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