Video

Playlist: BME Spanish Exchanges

Show less
46:44
Equity Update webinar: New highs — #SaxoStrats
Peter Garnry
12 October 2017 at 13:57 GMT
3:59
Quarterly Outlook: For the future, look no further than China
Peter Garnry
03 October 2017 at 11:33 GMT
3:12
Koefoed: More downside for EURUSD ahead of ECB meeting
Mads Koefoed
14 April 2015 at 10:09 GMT
2:35
Koefoed: Why I'm bullish on Spanish equities
Mads Koefoed
07 April 2015 at 13:53 GMT
2:19
Garnry: My essential equity trades for Q1
Peter Garnry
08 January 2015 at 10:00 GMT
2:49
Portugal: Drama or a crisis?
Peter Garnry
11 July 2014 at 9:16 GMT
1:33
How Italy and Spain are showing some muscle
Peter Garnry
05 September 2013 at 10:15 GMT
Video / 03 October 2017 at 7:34 GMT

From the Floor: Model 3 bottlenecks hit Tesla shares — #SaxoStrats

#SaxoStrats
   • Riksbank governor Stefan Ingves out at 0930 GMT
   • 'EURSEK is at interesting levels': Hardy
   • Strong US Manufacturing PMI data not reflected in USD
   • Spanish shares under pressure as Catalan crisis continues
   • Tesla bulls focus on strong quarter for Model S, Model X

SaxoStrats
By Michael McKenna

Tesla shares are widely regarded as a bellwether for electric car industry as governments around the world look to push the move away from polluting internal combustion engines. On Monday, the California-based firm reported deliveries largely in line with expectations for 2017's third quarter (26,150 versus 26,086 expected by consensus) while Model 3 production stands well below forecasts at 260 versus 1,500 expected due to what the company calls "bottlenecks".

"There are no fundamental issues with the Model 3 production or supply chain [...] and we are confident of addressing the manufacturing bottleneck issues in the near-term," said Tesla in a statement after yesterday's release post- the New York close.

Tesla shares dropped 2% in the after-hours session with bears focusing on the Model 3's teething issues. Bulls, says Saxo Bank head of equities strategy Peter Garnry, will likely choose to focus on strong Q3 sales for the company's established Model S and Model X variants.

Tesla shares:
Tesla
Source: Saxo Bank  

This morning sees newly reappointed Riksbank governor Stefan Ingves out in Gothenberg where Saxo head of FX strategy John J Hardy says that the market focus is on EURSEK downside.

"EURSEK is at interesting levels and we expect to see it continue to consolidate lower if today's speech offers no big surprises," Hardy adds.

EURSEK:
EURSEK

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank 

Beyond SEK, Hardy points to the lack of a pronounced dollar reaction to Monday's Manufacturing PMI data from the US, where the index stood at 60.8 – the highest level in a long time and the second-highest print seen since 1987.

"The subcomponents [of yesterday's headline print] were impressive but the USD reaction was not all that enthusiastic," says Hardy; "it's do-or-die time for USD".

Peter Garnry pointed to Catalonia-driven volatility in the Spanish IBEX index but added that the potential for big swings is currently somewhat hemmed in Spanish prime minister Mariano Rajoy's robust polling data as well as the European Union's cautious response to calls for Catalonian independence.

For more on Spain, the euro, US data, and the AUD, listen to Tuesday's morning call in its entirety above.

Tesla
Tesla shares are caught between strong sales of the firm's older models and difficulties with Model 3 production. Photo: Shutterstock

Michael McKenna is senior editor at Saxo Bank

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