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By Swissquote Analysts
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What will happen to Credit Suisse?

We spent the weekend talking about whether Credit Suisse will finally go bust or not. The share price is down below 4 francs a share, and the credit default swaps are going through the roof. The 5-year CDS for Credit Suisse spiked to 250 from around 60 at the start of the year. It means that the market is aggressively pricing a default for one of the biggest Swiss banks.

Is it possible? Yes, it is possible, but it is highly unlikely.

Zooming out, the third quarter ends with losses, even though we thought that the summer rally could’ve given something. But no.

The S&P500 finished the 3rd quarter having slipped to the lowest levels this year. The same is true for Nasdaq and the Dow Jones. $24 trillion have been wiped out of the stocks so far this year.

And the last quarter begins with aggressive rate hike expectations from the Federal Reserve (Fed), but also from the European Central Bank (ECB) and the Bank of England (BoE) to fight inflation and the dollar strength.
Nike has been the latest company warning investors of falling profits due to mountains of stockpiles that they inherited from the pandemic times – and which brought the company to make nice price discounts -, and the strong dollar.

This week, we will watch how Tesla will react to the latest delivery report, the OPEC decision and the US jobs figures… and hope that this week’s jobs data doesn’t reveal strong job additions, and solid salary growth in the US.

Watch the full episode to find out more!

What will happen to Credit Suisse? | MarketTalk: What’s up today? | Swissquote
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Swissquote (in English)
Video news

Treasuries on a sugar high as BoE buys bonds, again!

The Bank of England (BoE) jumped in the UK’s shattered sovereign market to buy long-term UK bonds yesterday, because apparently, they have been warned that collateral calls on Wednesday afternoon could force investors to further dump their UK sovereign holdings. And the UK could no longer afford another heavy selloff wave on its sovereigns.

The British 10-year yield fell 10% yesterday, and the pound jumped past the 1.08 mark against the US dollar and consolidated below 0.90 against the euro.

The FTSE recovered early losses and closed the session 0.30% higher, gold recovered to $1662 an ounce, American crude rallied past the $80 per barrel, also boosted by the Hurricane Ian’s negative impact on supply. Around 11% of the Gulf of Mexico production was halted due to the storm.
The S&P500 gained almost 2% yesterday to above 3700 level, while Nasdaq jumped more than 2%.

Will the enthusiasm last? Not so sure. Yesterday’s price action was a sugar rush, triggered by the BoE intervention. Enthusiasm will likely fall as the level of blood sugar falls across the financial markets.

Amazon jumped 3% as investors liked the new devices at Wednesday’s annual device event, and Apple slipped on announcement that it will, finally, not produce more iPhones compared to last years.
In Europe, all eyes are on Porsche that starts flying with its own wings today!

Watch the full episode to find out more!

Treasuries on a sugar high as BoE buys bonds, again! | MarketTalk: What’s up today? | Swissquote
By
Swissquote (in English)
Video news

Fed making BIG mistake, as Ukraine tensions hammer mood

The Russian natural gas is now bubbling somewhere in the Baltic Sea, being wasted in front of the horrified eyes of hundreds of millions of Europeans suffering from a historical energy crisis.

The European natural gas prices jumped 17% yesterday, while crude oil gained 2.30% on news that Russia now wants OPEC+ to cut output as deadlines to implement Russian fuel bans approach.

Plus, if the escalation on the energy front is not enough, governments of the four Moscow-occupied areas of Ukraine have all declared victories in the referendums with, of course, an unprecedented majority of residents saying YES to joining Russia.

The mounting tensions with Ukraine and the spike in nat gas prices fuel the European inflation expectations, but in vain. The EURUSD is pushing lower against the US dollar as recession worries mount.

The pound remains under a decent selling pressure as the Bank of England (BoE) officials are pushing the can down a very steep road, saying that it’s more appropriate to wait 5 WEEKS before taking action.

Even the safe haven assets are out of action right now. The dollar-swissy is about to test parity, as gold pushes lower as the dollar extends rally, and US yields rise.

The Fed officials make sure no one breath. But it is well possible that after having wrongly insisted that inflation was ‘transitory’, the Federal Reserve (Fed) could now making a second Big Policy Mistake of tightening beyond-appropriate.

Watch the full episode to find out more!

Fed making BIG mistake, as Ukraine tensions hammer mood | MarketTalk: What’s up today? | Swissquote
By
Swissquote (in English)