Short recap
Asia mixed
Europe opening higher but correcting
Kuroda sees 2% inflation in 2018
To keep the short term rate target at -0.1%
And 10-yr Japan bond yield at 0%
UK’s employers having hard times to recruit
foreign workers
Fed’s Bullard having concern over weaker
growth and inflation data in Q1
Alex Weber from UBS (former Bundesbank head):
Brexit negative for Europe, more volatility to come
ECB likely to remove some easing wording in June
And announce taper in Sep
Equities
Akzo Nobel rejected the PPG Industries take
over bid again
UK’s energy supplier Centrica not very happy with
warm weather and low commodity prices
As they bite into the margins
Home Capital suspended dividend, burnt 1.6 bln out
of 2.0 bln of line of credit as deposit flee away
Industry veterans added to the Board
Suncor looking at new oil sands project in Alberta
(Canada)
ISS pushing shareholders of PrivateBancorp
to reject takeover offer from CIBC
Earnings
Commerzbank reported higher operating income,
proof that raising rates benefit banks
Walt Disney expecting better results
Valeant investors more focussed on asset sales
than earnings
Others reporting: Allergan, Duke Energy, Nvidia,
Electronic Arts, SunPower,
VIX touching the 9.77 level, lowest level since 1993
Market sees very little risk in the near future
Will not last long, what is going to be the trigger?
Bonds
10-yr Trys yield at 2.39% with real yields at 2 month
high of 0.51%
10-yr Bund yield at 0.42% - ECB’s June language
adjustment and beginning of taper in Sep getting priced in
Yield likely to move to 0.50% attacking the recent highs
FR-GE spread stuck at 42 bps (after Macron victory),
stabilized here
What is still above 20-30 bps historic levels but market
is waiting for June Parliamentary elections
EURCHF, USDCHF – weaker CHF on higher yields
And money flows leaving safe heavens
To watch SNB sight deposits stats – to stabilize or fall?
USDJPY – on the way to 115.00 after clearing
Ichimoku
Next resistance 113.76 (76.4% Fibo)
Risk on, US yields and tax reform progress crucial
Commodities
Oil very indecisive as OPEC/non-OPEC cut may
extend to 2018
But slowing demand and rapidly rising production in US
temper the cut impact
Gold playing within 1200/50 range
USD and US yields not helping
Options market back to neutral
Specs long cut, real money no change
Data
US: Small Business Optimism Index to slow a bit
US: JOLTS to slow a bit
Fed's Kashkari (1300 GMT), George (1540 GMT), Rosengren
(1700 GMT) and Kaplan (2015 GMT) speaking
G7 finance ministers meeting in Italy this week
Discussing: trade, financial institutions, fighting
inequality and tax crime
Upcoming
Wed – ECB’s Draghi and Fed’s Rosengren, Kashkari
speaking
Thu – Fed's Dudley speaking
Fri – US CPI and Fed's Evans speaking
May 25 – OPEC/Non-OPEC meeting
June 8 – UK elections
June 11/18 – French Legislative (Parliamentary) elections
(a big question mark for Macron to gain majority)
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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