Read on the Trading Floor - 22 April 2024
Today’s focus… Relief rally, Tech earnings, EV oversupply and much more
Macro Themes At Play
Theme 1 - Relief rally ahead of Tech earnings
Theme 2 - China exporting deflation and in need of a deval?
Theme 3 - Oversupply of EV's?
Further reading and listening of note
Theme 1 - Relief rally ahead of Tech earnings
Positive start to the week as the weekend hedges get unwound and there is natural sigh of relief as tensions in the middle east have "eased" (for now). We've also entered the Fed black out window which will reduce vol in the fixed income market and with the docket for top tier US data limited this week, the focus has flipped firmly to Tech earnings. Growth is very much dependent on Nvidia! Finally if the BoJ was to do something, even a small hawkish surprise could accelerate a squeeze of record JPY short positions. (Bloomberg - Record Yen Shorts Increase Chances of Sharp, Painful Snapback)
Bloomberg - Ukraine Aid Passed by House With Mike Johnson’s Republicans Divided
Seeking Alpha - Tesla, Meta, Microsoft, Alphabet lead big earnings week
Bloomberg - Magnificent Seven Earnings Arrive With Stocks at Critical Moment
Steno Research - The week at a glance: Time for the BoJ to step up, while soft PCE numbers may fool some..