Video

Playlist

Show less
10:20
Morning Call: Softer dollar boosts commodities, stocks
#SaxoStrats
21 September 2018 at 7:40 GMT
10:35
Morning Call: Markets stabilise as trade tensions ease
#SaxoStrats
20 September 2018 at 8:28 GMT
8:51
Today’s FX chart analysis - video
John J Hardy
18 September 2018 at 10:28 GMT
9:42
Morning Call: Trump hits China with tariff plan
#SaxoStrats
18 September 2018 at 7:29 GMT
2:45
The week ahead in macro
Kay Van-Petersen
17 September 2018 at 8:11 GMT
27:58
Macro Monday week 38: Keep Global Macro and Carry On
Kay Van-Petersen
17 September 2018 at 8:02 GMT
10:00
Morning Call: US yield curve lifts, boosting dollar
#SaxoStrats
17 September 2018 at 7:23 GMT
43:30
Technical analysis webinar – A view of the market: Larsson
Kim Cramer Larsson
12 September 2018 at 14:44 GMT
11:15
Morning Call: Chinese shares fall further
#SaxoStrats
11 September 2018 at 8:36 GMT
11:34
Morning Call: USD, SEK in focus
#SaxoStrats
10 September 2018 at 7:49 GMT
2:47
The week ahead in macro
Kay Van-Petersen
10 September 2018 at 7:37 GMT
14:02
Morning Call: Is Japan next?
#SaxoStrats
07 September 2018 at 7:35 GMT
Video / 30 May 2018 at 7:34 GMT

From the Floor: 'It's too soon to get contrarian' — #SaxoStrats

#SaxoStrats
   • Italian political turmoil goes global as markets move to risk-off
   • European banks have entered a bear market: Garnry
   • Oil touches one-month low on Opec-plus supply fears

SaxoStrats
By Michael McKenna

The political unrest in Italy went global yesterday as markets moved into a broad risk-off climate, with news that the country's interim prime minister was unable to form a cabinet only strengthening this stance.

"EURJPY went below 124 and EURCHF headed below 1.14 Tuesday," says Saxo Bank head of FX strategy John Hardy, who adds that the global contagion surrounding the situation may lead to some sort of official response from European Union leaders or the European Central Bank.

"Investors should also watch the Italian bond auctions at 09:00 GMT today as we have €5 billion worth of five, seven-, and 10-year paper up for sale," Hardy says.

EURJPY
Source: Saxo Bank

In equities, markets felt the sting of the Italian situation yesterday with indices tracking lower around the globe. In Saxo Bank head of equity strategy Peter Garnry's view, it's too soon to start making contrarian moves; "European assets are already oversold in the shorter term," he says, "but we are still waiting for the maximum liquidation point".

One sector to watch is European banks, which Garnry reports are down 22% in what is officially a bear market.

In bonds, Saxo fixed income specialist Althea Spinozzi points to some interesting action yesterday in Italian two-year yields, which closed up 184 bps to 2.70%. In Spinozzi's view, this marks a potential opportunity for investors to sell two-year maturities and buy the 10-year on the broad-based selling of the shorter part of the curve.

Finally, Saxo Bank head of commodity strategy Ole Hansen reports that gold prices are relatively inhibited given the instability with a break of $1,308/oz needed to confirm a rally.

"Gold's relative weakness comes mainly down to a stronger USD," says Hansen.

For more on commodities, equities, and bonds, listen to today's Morning Call in full.

Michael McKenna is head of editorial at Saxo Bank
30 May
cb123 cb123
im putting a beginners question here: reuters buzz reports big option expires friday at 11800 i assume its a put option i.e in the money ? or is it both? thx

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail