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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Texas primary school had two days left in school year before deadly mass shooting that left 15 dead
  • Kissinger says Ukraine must give up land to Russia, warns West not to humiliate Putin
  • Three-truck collision claims 2 lives on Majuba Pass in KZN
  • Uber unlikely to ditch 25% driver commission
  • Klopp named Premier League manager of the year
  • Irish legends O’Gara and Sexton set for battle of wills in Marseille

Quote of the day…

“You’ll have bad times, but it’ll always wake you up to the good stuff you weren’t paying attention to.” – Sean Maguire

The indicators…

Currency crackdown…

The extended its gains against the US dollar for the forth consecutive session yesterday as it closed below the 15.70/$ mark for the first time since 4 May. The currency was supported rising gold prices and weaker dollar that fell to a one month low against it’s major peers. The gains also came despite world leaders in Davos warning of an impending global recession with inflation at generational highs in the US, EU and UK.

The dollar has recovered slightly this morning after dropping of yesterday amid a decline in Treasury yields as traders positioned themselves for slightly less aggressive Fed rate hikes. This followed comments from Atlanta Fed President Raphael Bostic, that warned that headlong rate hikes could create “significant economic dislocation,” and urged his colleagues to “proceed carefully.” Bostic is part of a small group of policymakers who favour reducing the pace of rate hikes later in the year if inflation slows. Also weighing on the dollar was a stronger euro that was lifted by comments from ECB President Christine Lagarde that eurozone interest rates will probably be positive by the end of the third quarter – implying an increase of at least 50 basis-points in the coming months. Monetary policy will remain in focus today, with investors eagerly anticipating the release of Fed’s last meeting minutes for more clues about the pace of its hiking cycle.

In other markets, Asian equities ignored a drop in US stocks on the back of disappointing housing and manufacturing data to trade higher this morning. European and UK markets also look set to open firmer with their respective futures markets rising, despite concerns over aggressive central bank rate hikes and slower global growth. In commodities, oil prices climbed on a report that showed US gasoline stockpiles had fallen, while Saudi Arabia said that there was nothing it could do to normalise the market. Gold eased slightly this morning but is still trading near a two week high reached yesterday.

On the radar…

  • All – Russia/Ukraine Crisis
  • All – Covid 5th Wave
  • US – Fed Member Brainard Speaks
  • US – Fed Meeting Minutes
  • EU – ECB President Lagarde Speaks
  • EU – ECB Financial Stability Review
  • EU – ECB’s Lane Speaks
  • UK – Fed Member Brainard Speaks

Did you know?

Geckos can turn the stickiness of their feet on and off at will.

Have a great day,

Nyiko

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