Banque Bemo L : Daily Markets Brief

Daily Market Brief

February 22nd 2023

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Forexlive)

EURUSD

EUR/USD extends pullback from intraday high to 1.0650 during the first positive day in three amid the early Wednesday. That said, The Euro pair's initial gains could be linked to the US Dollar's retreat amid a cautious mood ahead of the (FOMC) Minutes. Also adding strength to the EUR/USD run-up were the sluggish US Treasury bond yields after they refreshed a three-month high. Furthermore, concerns that the (ECB) will increase the benchmark rates to an all-time high also strengthened the pair's rebound.

GBPUSD

GBP/USD grinds higher past 1.2100, during the initial hours of Wednesday's Asian trading, as upbeat UK fundamentals keep Cable buyers hopeful ahead of the key (FOMC) Minutes. That said, strong UK data and hopes of overcoming multi-day-old nurse strikes in Britain seemed to have underpinned the pair's latest run-up.

USDJPY

USD/JPY bulls take a breather after a three-day winning streak, making rounds to

135.00 as Tokyo opens on Wednesday. In doing so, the Yen pair tracks the grinding of the US Treasury bond yields around multi-day top ahead of the key (FOMC) Monetary Policy Minutes. It should be noted that the recently softer Japan data and upbeat US statistics underpin the hawkish Fed bets to keep buyers hopeful.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

Wall Street posted its worst performance of the year on Tuesday, with the main benchmarks ending down as investors interpreted a rebound in U.S. business activity in February to mean interest rates will need to stay higher for longer to control inflation.

EUROPE

European shares slipped on Tuesday after strong economic data fuelled expectations of higher interest rates, while London-listed HSBC (HSBA.L) rallied on a quarterly profit surge. Euro zone PMI at 9-month high as services supports.

ASIA

Hong Kong shares closed lower on Tuesday, weighed down by geopolitical worries ahead of the Ukraine war's one-year anniversary and doubts around China's economic recovery.

MUST READ

(Source: Bloomberg/ Forexlive)

A hedge fund manager says stock-market pain is only beginning

Veteran trader Neal Berger is betting that global assets are going to feel more pain, after scoring a massive gain last year when stocks had their worst performance since 2008. According to a Bloomberg report, he ran Eagle's View Capital Management as a fund of funds for 16 years before launching the Contrarian Macro Fund, which in April 2021 piled up bets on an increasingly hawkish Federal Reserve. The new fund delivered a return of about 163% in 2022. "The reason why I started the fund was that central bank flows were going to change 180 degrees. That key difference would be a headwind on all asset prices," he told Bloomberg. "One had to believe that the prices we saw were, to use the academic term, wackadoodle." Per the report, Eagle's View has about $700 million in assets under management, and roughly $200 million in the Contrarian Macro Fund. The turbulence of the previous year brought losses for many money managers, but Berger found the opposite. He told Bloomberg he's shorting stocks and bonds with futures contracts, targeting assets he believes have been skewed by easy money policies. In particular, his Contrarian Macro Fund is mostly betting against Europen and American assets, though it also has hedges that will pay returns in upswings. "The $19 trillion of sovereign debt trading at negative yields, the SPAC boom, the crypto boom, private equity valuations and public equity valuations - they're all stripes of the same zebra," he explained. "The zebra being the ocean of liquidity, first in response to the Great Financial Crisis and then to Covid.

Fx rates	Last	High	Low	% Daily	% Weekly	% YTD
EUR-USD	1.0656	1.0664	1.0646	0.08	-0.31	-0.46
GBP-USD	1.2104	1.2136	1.2098	-0.07	0.62	0.17
USD-JPY	134.84	135.06	134.55	-0.13	-0.50	-2.76
USD-CHF	0.9263	0.9279	0.9262	-0.16	-0.27	-0.19
Commodities	Last	High	Low	% Daily	% Weekly	% YTD
Silver	21.82	21.90	21.80	-0.06	0.90	-8.91
Crude Oil	75.88	76.55	75.84	-0.63	-4.24	-5.77
Bitcoin	24016.39	24476.16	23879.28	-0.76	-1.92	45.21
Etherium	1636.10	1667.05	1623.10	-0.38	-3.41	36.41
Period		1 M	3 M			12 M
EURIBOR		2.38	2.65			3.58
* USD LIBOR rates will be discontinued after June 30, 2023 and will be replaced by SOFR
Notes/Bonds		2 Y	10 Y			30 Y
US		4.67	3.94			3.96
BTP - BUND		0.54	1.94			2.05
GILTS		3.92	3.61			4.01
Index	Close	% Daily	% M	YTD	Futures	% Change
S&P	3997.34	-2.00	0.62	4.11	4011.25	0.14
Nasdaq	11492.30	-2.50	3.16	9.80	12115.25	0.16
DJ EuroStoxx50	4250.40	-0.49	3.17	12.04	4245.00	-0.21
FTSE 100	7977.75	-0.46	2.67	7.06	7922.50	-0.28
CAC 40	7308.65	-0.37	4.47	12.90	7342.90	N/A
DAX	15397.62	-0.52	2.42	10.59	15395.00	-0.14
IBEX 35	9252.10	-0.31	3.74	12.43	9354.30	N/A
FTSE MIB	27409.34	-0.68	6.34	15.62	27468.00	N/A
Nikkei	27104.32	-1.34	2.07	3.87	27080.00	-1.35
Hang Seng	20529.49	-0.28	-7.13	3.50	20474.00	-0.36
DFM General	3458.00	0.11	3.26	3.77	N/A	N/A
MSCI Tadawoul	10269.73	-0.98	-4.24	-1.99	N/A	N/A
	PRIOR_CLOSE_MID		CHG_PC CHG_PC CHG_PCT_
Leb. Mrkts	Closing Px	High	Low	% Daily	% Weekly	YTD
Solidere B	66.20	66.20	66.20	1.77	2.40	9.69
		MAIN WEEKLY EARNINGS	(Source: Nasdaq)
Company	Ticker	Market Cap	Date	Time	Estimate	Year Ago
NVIDIA Corporatio	NVDA UA	$541.2 B	22-Feb-23	After-mkt	0.48	1.14
BABA US	Alibaba Group	$272.9 B	23-Feb-23	Pre-mkt	1.89	2.20
Intuit Inc.	INTU US	$114.7 B	23-Feb-23	After-mkt	0.29	0.67
Moderna, Inc	MRNA US	$66.2 B	23-Feb-23	Pre-mkt	4.66	11.29
NetEase, Inc	NTES US	$57.6 B	23-Feb-23	Pre-mkt	1.12	1.34
		ECONOMIC CALENDER	(Source: Forexlive)

(22-02-23) DE- Harmonized Index of Consumer Prices YoY JAN; 10-y Bond Auction

(22-02-23) DE- IFO - Current Assessment, Expectations, Business Climate FEB

(22-02-23) CH- ZEW Survey - Expectations FEB

(22-02-23) US- FOMC Minutes report

(23-02-23) GB- BoE's Mann speech

(23-02-23) EA- Harmonized Index of Consumer Prices JAN

(23-02-23) US- Gross Domestic Product Annualized Q4 preliminar

CONTACT	Banque BEMO sal
Asset Management Unit

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Tel: [phone]

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