The “soft landing” narrative has gained material momentum in the mainstream coverage ahead of 2024, which is a clear risk to the outlook. It always looks like a soft landing until the nosedive.
Steno Signals
Steno Signals is our weekly editorial on everything macro. The byline of the editorial is Andreas Steno Larsen, former chief strategist at Nordea Bank and CEO of Steno Research.
5 things we watch: IFO, US rates, Earnings revisions, USD & Gasoline
It’s Wednesday and that means time for another 5 things we watch where we hone in on the things that we have been most interested in over the last week.
Steno Signals #74 – Did King USD just break?
Sudden sharp moves against the USD after Powell let go of the monetary steering wheel. Will the Fed take back control or has the USD already peaked? This is the key question in global macro before New Years.
5 things we watch: Trump, Electricity, CPI, Crude Oil, Fixed Income
It’s Wednesday and that means time for another 5 things we watch where we hone in on the things that we have been most interested in over the last week.
Steno Signals #73 – An abysmal impulse for 2024
We are currently “riding” a few of the positive impulses from lower input prices over the past year, but the impulses for 2024 do not look good and the positivity is likely going to be short-lived with rates volatility back.
5 Things We Watch: Macro Regime, Riyadh Accord, Sloos, Ukraine, USD
It’s Wednesday and that means time for another 5 things we watch where we hone in on the things that we have been most interested in over the last week.
Steno Signals #72 – When a recession meets a melt-up in equities and bonds
The Fed introduced a new feedback loop, which is likely to limit the scope of this bear market rally. Remember that Q4 data usually looks really bad in an inflationary environment, while Q1 is the quarter of “inflation math”.
5 Things We Watch – BOJ, JPY, Treasury, Equities & Portfolio
This week’s 5 Things has a strong focus on Japan and the BOJ while it also touches on the equity market and lends the reader a look at our portfolio.
Steno Signals #71 – A first taste of the recession sell-off?
The developments in the Middle East have refueled the recession fears and markets are getting concerned due to the spike in term premiums. Is this a first taste of the recession sell-off coming? Here is how we deal with it.
5 Things We Watch – Central Bank Outlook, USDJPY, Natural Gas, Credit & Liquidity
USDJPY will probably be THE pair to watch, as a break of the 150 handle will be catastrophic for risk sentiment and the path for BoJ. Read what else to look out for in global macro in our 5 things to watch.
Steno Signals #70 – 10 charts you NEED to monitor in global macro
From the ongoing depletion of the Chinese US Treasury holdings, to the BoJ’s impact on global markets concluding with the $-liquidity impact of the ON RRP facility. Here’s a list of 10 MUST watch charts in macro.
5 Things We Watch: BoJ, JPY & CNY, Monetary trends, UST selloff & Biden’s visit in Israel
While tension keeps mounting in the Middle East, we’ve decided to broaden the global macro-horizon. From rising pressures in Japanese policy and the preceding Asian currencies to monetary trends in EUR and USD, and everything in between. We break down this week’s most noteworthy developments.
Steno Signals #69 – The recession playbook
Recession models are mostly based on manufacturing, which currently rebounds leading to the conclusion that the recession risk recedes? But are actual recession risks rather on the rise?
5 Things We Watch: Recession, Gasoline, Temperatures, Geopolitics and Portfolio
Happy Wednesday, and welcome back to our 5 Things We Watch, where we as always run through 5 interesting topics in global macro relevant to the current and near-term market actions. We’ll as usual be short and concise, covering what has already happened this week, as well as what will happen next.
Steno Signals #68: There is NOT enough buyers for bonds amidst all this
Public deficits are running wild, while the risk of another war that needs ongoing funding is growing. US households have net bought loads of US Treasuries, but will they continue in light of ongoing disappointments?
5 Things We Watch – Manufacturing, Natural Gas, JOLTS, BoJ & China
BoJ likely intervened yesterday for the first time in a year, the American labor market looks stronger than feared and PBoC is looking to cope with domestic capital flights. Read more in this week’s edition of ‘5 Things We Watch’.
Steno Signals #67 – 150bps higher 10yr yields and parity up next in EURUSD?
We know the playbook from last year if the energy squeeze is just getting started. Rising demand/activity in the energy-intensive industry is a negative for the overall asset market in regions with scarce supply. Parity up next?
Nuclear Nugget (FREE): 3 Questions For The Nuclear Space
Hi and welcome to this free post where we wanted to touch upon uranium and nuclear energy since it has been a trending topic for a couple of weeks now. We pose 3 questions which we briefly try to answer in order to give you an idea where we are and what is going on in the uranium and nuclear space.
5 Things We Watch – EUR Inflation, Ifo Survey, Swedish CRE, Deposit Flights & Nuclear/Uranium
Markets are finally sensing that something is rotten in the economy. We have a look at what to stay on top of in the weeks to come.
Steno Signals #66: Buckle up for the energy crisis 2.0
Is the current energy crisis reminiscent of 2022? We compared the energy crisis 2.0 to the 1.0 crisis of 2021/2022 and díscuss the trading playbook in such a scenario. Enjoy (the crisis)!
5 Things We Watch – Fed, BoE, Energy, GDI/GDP & BoJ
With Central Bank rate decisions taking headlines this week, we have a look at the 5 things we watch in global macro, and give you our take on FOMC, BoE and more.
Steno Signals #65 – The 4 things that worry me the most in global macro right now
I am getting increasingly concerned about (at least) four things in the current global macro setup, which leaves prudent risk management in investing more relevant than usual.
5 Things We Watch – UK Rates, OPEC, US Manufacturing, ECB & Portfolio
Happy Wednesday, and welcome back to our weekly edition of 5 Things We Watch, where we take you through the 5 things we are currently keeping an eye on in the global macro landscape.
Steno Signals #64 – The one on ESG-flation, oil and other tangibles
It is no secret that we have never been major fans of the overfitted ESG narrative in investing, but the market is now starting to chime in. Windmills suffer while Oil gains. Who would have thought a few years ago?
5 Things We Watch – ISM, Energy, German manufacturing, US labor market, Global Rates
Our services week is hot and running, where we share our take on the rebound in manufacturing amidst a weakening in the services sector. Today we will share some of the takes we have looked at, as well as what lies ahead
Steno Signals #63: STAGFLATION in Europe and payroll recession in the US?
Sticky inflation, renewed issues with high energy costs and a light recession in the making already. Europe screams stagflation and even the ECB admits to it. Meanwhile, we are edging closer to the actual payroll recession in the US.
5 Things We Watch – EU Inflation, US Labor Market, European Money Growth, UK Stagflation & IFO
The doves are back after yesterday’s job openings data which signaled a labor market cooling off, allowing consensus to favor a pause in September. As always, there are plenty of things to dive into in this week’s edition.
Steno Signals #62 – The recession is called off (by consensus)
The “no-landing” camp is getting increasingly crowded and even if we do not rule such a scenario out, we find that the probability of outcomes is starting to favor a more conservative approach to risk taking.
5 Things We Watch: China, burdens & beyond
What’s up in energy markets, will European inflation be below 2% before year-end, should we expect trouble to hit US real estate and how about the Yuan and its implications for global markets? Our two cents here.
Steno Signals #61 – The end of China as we know it?
The doom and gloom in China is suddenly back with a vengeance and everyone seems convinced that China is now in a structural decline driven by an embedded balance sheet recession and extremely weak demographics. But how bad is it really?