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Squawk / Yesterday at 20:42 GMTDAX
Squawk / Yesterday at 18:04 GMTForeign Hedging - "Another notable trend has been greater FX hedging of EURdenominated investments. Given that FX hedges are typically done over-the-counter, we gauge this dynamic by examining the ETF market. Since the ECB implemented a negative deposit rate, implicitly using EUR as the transmission
mechanism for monetary policy, foreign investors have
significantly increased FX-hedged equity investments relative
to unhedged ones (see Exhibit 6). As long as front-end rates
trade in the red, foreign investors essentially are paid to
remove FX risk from their European investments. And
knowing that the central bank welcomes a significantly weaker
currency to boost competitiveness and increase imported
inflation, we expect this hedging to continue." in THE EURO IMITATION GAME by Morgan Stanley (FX Pulse - https://login.matrix.ms.com )
Article / Yesterday at 17:39 GMT
Market Close: Robust US GDP report fails to lift market sentimentEuropean markets ended firmer after preliminary data revealed that consumer price inflation in Germany came in higher than market estimates in February. US stocks are trading mostly lower. Today’s data revealed that US gross domestic product surpassed market estimates for the fourth quarter of 2014.Read the article
Calendar event / Yesterday at 16:59 GMT
US Citigroup IncpreviousforecastactualHigh Dividend0.01
Article / Yesterday at 15:39 GMT
Investment Outlook: The next crisis starts hereModern monetary policy is both active and aggressive. Relative to nominal growth, the monetary impulse is now almost as expansive as was seen during the height of the bubble years. This is likely laying the foundation for the next crisis.Read the article
Article / Yesterday at 15:05 GMT
No inflation? No problemUS GDP growth may have fallen short of expectations and CPI readings may signal deflation, but the American economy is fundamentally strong. A deeper look into the statistics, including into energy trends and Core CPI readings, makes this quite clear.Read the article
Squawk / Yesterday at 14:54 GMTChicago PMI drops sharply in February to 5-year low:
Consensus had looked for a small decline to 58 in February from 59.4 in January, but instead the Chicago PMI surprised everybody with a plunge to just 45.8, the lowest print since mid-2009.
S&P 500 is down 0.2% on the news.
The ISM manufacturing report will be released on Monday.
Trade view / Yesterday at 13:54 GMTMedium term
Lululemon coils up for a big moveShares of Canadian athletic clothing maker lululemon athletica (LULU:xnas) rallied sharply since last October but since late January have largely traded in a tight consolidation range. This healthy price action could soon see the stock release higher again, allowing active traders and investors to hop on board.Read the Trade View
Squawk / Yesterday at 13:49 GMTVolkswagen operatin profit €12,7B vs €12,5Be
Squawk / Yesterday at 13:38 GMTUS Q4 GDP growth revised down to 2.2% on inventories:
The second estimate of fourth quarter GDP for the US resulted in a downward revision of 0.4pp to 2.2%, confirming that the US economy slowed down in the final quarter of 2014 after growth of 4.6% and 5% in Q2 and Q3 respectively. However, the main culprit of the downward revision were inventories, which are now estimated to have added 0.1pp to growth vs. 0.8pp in the original estimate.
Key components such as private consumption (2.8pp vs. 2.9pp prior), fixed investment (0.7pp vs. 0.4pp), government consumption (-0.3pp vs. -0.4pp) and net exports (-1.2pp vs. -1pp) saw little change.
All in all, a non-event.