Macro Strategist, Saxo Capital Markets

Kay Van-Petersen

Macro Strategist

Saxo Capital Markets

Thematic (Sector/Industry)

Probably the next most important thing is actually not the Brexit, but the next few Fed hikes<ul><li>Whilst Jun is live, I think Jul or Sep are more likely with the second hike in Dec, those Fed minutes from last week left very little to the imagination. They were hawkish</li><li>Fed implied probability of two rate hikes by year end is too low at 25%, should be closer to 50. The street is behind the curve on this and/or does not believe it (ripples with 2015)</li><li>Where does the DXY go, given we got to 100.17 (Nov 30) going into just one rate hike in Dec last year? Where do US 10yrs go, given we are at 1.83% &amp; we were c. 2.30% in Dec last year?</li><li>Flash PMI themed week ahead, including key GDP readings out of Europe. UK will get 2nd GDP reading with mkt expecting +2.1% YoY</li></ul>

Probably the next most important thing is actually not the Brexit, but the next few Fed hikesWhilst Jun is live, I think Jul or Sep are more likely with the second hike in Dec, those Fed minutes from last week left very little to the imagination. They were hawkishFed implied probability of two rate hikes by year end is too low at 25%, should be closer to 50. The street is behind the curve on this and/or does not believe it (ripples with 2015)Where does the DXY go, given we got to 100.17 (Nov 30) going into just one rate hike in Dec last year? Where do US 10yrs go, given we are at 1.83% &amp; we were c. 2.30% in Dec last year?Flash PMI themed week ahead, including key GDP readings out of Europe. UK will get 2nd GDP reading with mkt expecting +2.1% YoY

Global Macro Take: WK 21 – The Fed To Hike Over The Next 3 Meetings [Jun 15, Jul 27, Sep 21]

<ul><li>Key close on DXY above 94.50 on a Friday, liquidating my thesis on a tactical USD liquidation phase. Seems like we’ve now had a very sharp V-shaped bounce from the pullback 2 wks back</li><li>If the strong USD trend continues, we’d expect risk-off to be the flavour of the moment with EM, Commodities &amp; equities in general set to decline</li><li>Check out the long NOKSEK SaxoStrats idea flagged by our Head of FX Strategy John Hardy – I like the thesis, it definitely worth doing some heavy lifting on this</li><li>Plus a few links to the Sohn Investment Conference where movers &amp; shakers such as Chanos &amp; Druckenmiller were talking their views </li></ul>

Key close on DXY above 94.50 on a Friday, liquidating my thesis on a tactical USD liquidation phase. Seems like we’ve now had a very sharp V-shaped bounce from the pullback 2 wks backIf the strong USD trend continues, we’d expect risk-off to be the flavour of the moment with EM, Commodities &amp; equities in general set to declineCheck out the long NOKSEK SaxoStrats idea flagged by our Head of FX Strategy John Hardy – I like the thesis, it definitely worth doing some heavy lifting on thisPlus a few links to the Sohn Investment Conference where movers &amp; shakers such as Chanos &amp; Druckenmiller were talking their views 

Global Macro Take: WK 20 – The US Dollar Just Won't Die

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

<ul><li class="p1">All fixed-income indexes posted especially strong returns considering the current low-yield environment, because of falling interest rates and narrowing credit spreads</li><li class="p1">After many years of underperformance, value stocks reasserted themselves in the first quarter, outperforming growth</li><li class="p1">A year ago, small stocks looked overvalued, but after a 9.8% drop (versus a 1.8% gain for large stocks), they are now closer to fairly valued territory</li></ul>Analysts: Bob Johnson, Timothy Strauts, Alina Lamy

All fixed-income indexes posted especially strong returns considering the current low-yield environment, because of falling interest rates and narrowing credit spreadsAfter many years of underperformance, value stocks reasserted themselves in the first quarter, outperforming growthA year ago, small stocks looked overvalued, but after a 9.8% drop (versus a 1.8% gain for large stocks), they are now closer to fairly valued territoryAnalysts: Bob Johnson, Timothy Strauts, Alina Lamy

FX Strategist

Greg Gibbs

Fundamental analysis of topical themes in FX

Amplifying Global FX Capital

Amplifying Global FX Capital was founded in 2015 and is fully owned by Greg Gibbs. It is a registered company both in Australia and Colorado, USA and is a licensed in Australia to provide financial services.

We are producing a regular trading view orientated macroeconomic analysis of topical themes in global financial markets, with a particular focus on foreign exchange. We invite you to view an “executive summary” of these reports in “AmpGFX Reports” under our “Research” menu.

These reports are drawn from the analysis of Greg Gibbs and inform the capital management he undertakes on behalf of the company. The trading performance is posted periodically on our website. We aim to build our company into both a research and capital management business. We are currently in the planning phase for managing capital for wholesale customers.

Greg Gibbs has spent his working life of more than 26 years in financial markets, beginning in 1989 at the Reserve Bank of Australia, after completing a Bachelor of Economics Degree (Honours) at the Australian National University. He has been a CFA Charterholder since 2005. He has worked in Sydney, Singapore, New York and London for major global banks and presented on foreign exchange markets to major financial institutions and companies around the world, and maintained a high profile in the financial media.

Before Amplifying Global FX Capital, Greg was the Head of Asia Pacific Market Strategy at the Royal Bank of Scotland based Singapore. He now resides in Breckenridge Colorado.

Macroeconomics

Global equities look tired and are exhibiting investor fears over diminishing capacity for and returns from further global monetary policy easing.  Policymakers are admitting problems and looking more impatiently to governments to step up efforts to stimulate growth with fiscal stimulus and structural reform.  However, significant progress on this front almost seems hopeless and central banks are being forced reluctantly to do more.  These same fears have returned in China with its capital markets displaying a lack of confidence in the sustainability of policies aimed at boosting growth, as rapid credit expansion yields little overall economic advance. In this environment we expect gold to continue its advance.  However, gold has been boosted recently by the surge in JPY and overall weakness in the USD.  These trends may be tired with Japanese policy makers stepping up their threats of intervention and further policy easing, while US rate hike expectations have been pushed further out and strength in US labor data this week may support the USD.  As such we now see long gold/short JPY as offering a better reward for risk.

Global equities look tired and are exhibiting investor fears over diminishing capacity for and returns from further global monetary policy easing.  Policymakers are admitting problems and looking more impatiently to governments to step up efforts to stimulate growth with fiscal stimulus and structural reform.  However, significant progress on this front almost seems hopeless and central banks are being forced reluctantly to do more.  These same fears have returned in China with its capital markets displaying a lack of confidence in the sustainability of policies aimed at boosting growth, as rapid credit expansion yields little overall economic advance. In this environment we expect gold to continue its advance.  However, gold has been boosted recently by the surge in JPY and overall weakness in the USD.  These trends may be tired with Japanese policy makers stepping up their threats of intervention and further policy easing, while US rate hike expectations have been pushed further out and strength in US labor data this week may support the USD.  As such we now see long gold/short JPY as offering a better reward for risk.

AmpGFX - Frustration, Despair and Case for Gold/JPY

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

We mentioned in our previous report <a href="https://www.smartkarma.com/insights/national-assembly-4-year-cycles-its-impact-on-korean-construction-stocks" target="_blank" data-smartkarma-citation="insights:2812">National Assembly 4 Year Cycles &amp; Its Impact on Korean Construction Stocks</a> how the major Korean construction stocks on average tended to outperform the KOSPI index on absolute and relative to KOSPI three months leading into the election and underperform the KOSPI index on absolute and relative terms three months after each of the past four National Assembly elections in Korea.We believe now is a prime time to become more cautious on the four major construction…

We mentioned in our previous report National Assembly 4 Year Cycles &amp; Its Impact on Korean Construction Stocks how the major Korean construction stocks on average tended to outperform the KOSPI index on absolute and relative to KOSPI three months leading into the election and underperform the KOSPI index on absolute and relative terms three months after each of the past four National Assembly elections in Korea.We believe now is a prime time to become more cautious on the four major construction…

Warning on Korean Construction Stocks: Ruling Saenuri Party Is Crushed in National Assembly Election

United States

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Global Macro Take: WK 21 – The Fed To Hike Over The Next 3 Meetings [Jun 15, Jul 27, Sep 21]

Probably the next most important thing is actually not the Brexit, but the next few Fed hikes Whilst Jun is live, I think Jul or Sep are more...

Kay Van-Petersen

Global Macro Take: WK 20 – The US Dollar Just Won't Die

Key close on DXY above 94.50 on a Friday, liquidating my thesis on a tactical USD liquidation phase. Seems like we’ve now had a very sharp...

Kay Van-Petersen

Morningstar Markets Observer: Q2 2016

All fixed-income indexes posted especially strong returns considering the current low-yield environment, because of falling interest rates and...

Morningstar, Inc.

AmpGFX - Frustration, Despair and Case for Gold/JPY

Global equities look tired and are exhibiting investor fears over diminishing capacity for and returns from further global monetary policy easing. ...

Greg Gibbs

Warning on Korean Construction Stocks: Ruling Saenuri Party Is Crushed in National Assembly Election

We mentioned in our previous report National Assembly 4 Year Cycles & Its Impact on Korean Construction Stocks how the major Korean...

Douglas Kim

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