British Sovereign Bonds | Tech Giants Will Announce Earnings (Google And Microsoft)
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After both Boris Johnson and Penny Mordaunt pulled out of the British PM race, Rushi Sunak cried victory on Monday afternoon, and markets cried ‘Ready for Rishi’.
The new UK Prime Minister
The British sovereign bonds posted one of the biggest gains on record, the 10-year gilt yield tanked 8.50%, the 30-year yield dived 8.40%, sterling gained.
Investors loved seeing Sunak become the new UK Prime Minister, they, however, hated seeing Xi Jinping confirm a third term.
NASDAQ
Nasdaq’s Golden Dragon China index lost more than 20% yesterday and closed the session more than 14% down. Direxion’s FTSE China Bear times 3 ETF jumped almost 30% in the session.
Macro data
On macro, the PMI data revealed yesterday did little good to the mood in Europe. The composite PMI fell to 47.1, which is the lowest level since April 2013.
In the US, the services sector saw a sharp, and an unexpected decline to 46.6, from 49.3 printed a month earlier, and 49.6 expected by analysts.
Japanese core CPI advanced to 2% versus 1.9% expected by analysts. The dollar-yen trades touch below the 149 mark after the Bank of Japan (BoJ) intervened to slowdown the depreciation in yen.
US tech giants
In the corporate space, two big US tech giants are due to announce earnings: Alphabet and Microsoft.
Their revenues are expected to have slowed in the latest quarter, but how much of the slowdown is already priced in?
Walking into the results, it’s important to remember that soft results don’t necessarily mean negative market reaction. If the soft results still beat the market estimates, we could see Google, and Microsoft shares rally.
Watch the full episode to find out more!
- 0:00 Intro
- 0:39 Markets are ready for Rishi!
- 2:52 …but not for Xi.
- 4:32 PMI data disappoint
- 6:00 Japanese inflation advance
- 7:25 Google earnings preview
- 9:07 Microsoft earnings preview
- 10:20 Option traders bet for Tesla below $200!
Ipek Ozkardeskaya
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
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