Jump to content

Traders see inflation as 2022's biggest market mover - survey


Recommended Posts

Reuters.pngEconomyFeb 23, 2022 
 
 
 
Traders see inflation as 2022's biggest market mover - survey© Reuters. A picture illustration of U.S. dollar, Swiss Franc, British pound and Euro bank notes, taken in Warsaw January 26, 2011. REUTERS/Kacper Pempel

By Lucy Raitano

LONDON (Reuters) - Inflation will have the biggest impact on global markets in 2022, traders said, while liquidity was the top daily trading challenge for a sixth year, according to an annual survey of institutional trading clients by JPMorgan (NYSE:JPM) published on Wednesday.

About 48% of 718 institutional trading clients surveyed at the end of November 2021 highlighted inflation as this year's biggest market mover, displacing the global pandemic, which topped last year's list.

Market expectations of impending interest rate hikes have been rising since late last year, and hopes that the trend would be transitory have receded in recent weeks as major countries have struggled with soaring inflation readings.

Economic dislocation and the pandemic were the next factors seen as having the biggest impact, each polling at 13%.

"The expectation is that this focus and concern will likely lead to more market activity and volatility given that inflation has not been a theme for over a decade," said Scott Wacker, head of FICC e-Commerce sales at J.P. Morgan, "This will continue to reinforce the importance of liquidity and consistency of pricing which continues to play into the hands of electronic trading."

Trading through electronic channels has risen in recent years and traders across all asset classes expect this upward trend to continue for the next two years, the survey found.

"We’ve had two years of pretty unusual circumstances with the pandemic - a lot of clients moved away from the office and to the home environments during a very volatile market environment, it was the perfect storm for increasing electronic trading," JP Morgan's Wacker said.

Mobile trading applications were seen as the main influence shaping markets in the next year, selected by 29% of traders.

Notably, artificial intelligence and machine learning are soon expected to overtake mobile tech as the main influencers, partly because many traders expect to have mobile tech in place by then, JP Morgan's Wacker said.

Nearly half of those surveyed said artificial and machine learning will be the most influential factor shaping the future of trading in three years, followed by blockchain with 24% of the vote.

Currency markets beat their fixed income counterparts in terms of proportion of trading through e-channels, which stood at 69%, according to the survey. FX traders expect this to jump to 85% by 2023.

Rates and credit traders expect increases of 17% in the proportion of trading executed through e-trading channels.

 

"Credit is a new frontier market for algo trading, a lot of the new technology that is emerging is in credit," said Wacker, adding that JP Morgan is trading some corporate bonds using algos across the US, EMEA and EM.

Algo trading or algorithmic trading refers to the business of using fast-paced computing software to trade markets. They have become a powerful tool in volatile markets in recent years.

Link to comment

Puma predicts strong 2022 even as inflation weighs

Reuters.pngStock MarketsFeb 23, 2022 
 
 
 
Puma predicts strong 2022 even as inflation weighs© Reuters. FILE PHOTO: The logo of German sports goods firm Puma is seen at the entrance of one of its stores in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger

BERLIN (Reuters) -German sportswear maker Puma said on Wednesday it expected sales to grow at least 10% on a currency-adjusted basis in 2022 but it cautioned that COVID-19 restrictions and inflationary pressures would limit profit growth.

Puma expects 2022 operating earnings to come in at 600 million to 700 million euros ($679 million-$792 million), up from 557 million in 2021, and said net earnings should improve correspondingly.

Puma had already reported stronger-than-expected preliminary quarterly sales and core profit in January, with fourth-quarter sales up a currency-adjusted 14%.

Puma said higher freight costs and raw material prices, as well as operating constraints due to COVID-19, would weigh on profitability.

"COVID-19 is unfortunately still negatively affecting our supply chain, inflationary pressures are having a negative impact on our costs and operating margins and the geopolitical situation remains very tense," Chief Executive Bjorn Gulden said in a statement.

"But I remain very optimistic for the future of both our sector in general and Puma in particular."

Like other Western brands, Puma has come under fire in China for saying it would not source cotton from Xinjiang after reports of human rights abuses against Uyghur Muslims. Beijing denies any abuses.

Puma said fourth-quarter sales fell 5.4% in Asia/Pacific, pulled down by the Greater China market due to COVID-19 restrictions and "geopolitical tensions," while almost all other markets in the region reported double-digit growth.

 

Rival Nike Inc (NYSE:NKE) said in December it was more confident of easing supply chain issues in its next fiscal year as it beat quarterly revenue and profit estimates, even as its sales fell 20% in Greater China.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,105
    • Total Posts
      88,180
    • Total Members
      69,098
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Protato
    Joined 04/10/22 18:59
  • Posts

    • DAX Performance Index ^GDAXI INDEXDB: DAX 40 Chart and Forecasts. FTSE 100 Index, EURO STOXX 50, Forex EURUSD GBPUSD DXY Dollar Index Elliott Wave Technical Analysis European Stock Market Daily News Headlines:BOE The Monetary Policy summary and minutes are published at 12 noon on a Thursday eight times a year. Market Indices Overview: Today I look at different ways to view the current move upwards Elliott Wave Trading Strategy: No Strategy; unless shorting the top of this current impulse waves late in the next trading session Video Chapters 00:00 DAX 40 (GDAXI)  17:23 EURO STOXX 50 18:33 UKX / FTSE 100  20:35 Forex GBPUSD / EURUSD / DXY  40:52 Thanks for watching! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  
    • Stocks: AAPL, AMZN, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM. Elliott Wave  SP500 US Stock Bear Market: AMZN, AAPL, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM, GS. Elliott Wave Technical Analysis  Stock Market News: Stocks rise, however the move up continue to move up on lower volume, divergence and corrective bear market rally, that should complete in the next trading session Stock Market Summary Elliott Wave Count: Elliott Wave Analysis - (iv) of c) of 4 of (1) Analysis US Stocks: Tesla TSLA, Amazon AMZN, Nvidia (NVDA), Apple AAPL, Microsoft MSFT, Berkshire Hathaway (BRK/B),Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Trading strategies: Looking to short the top and turn in the trading session Video Chapters 00:00 SP500 06:58 Apple (AAPL) 12:22 NVIDIA (NVDA) 14:40 Amazon (AMZN) 18:35 Meta Platforms (META) 20:17 Netflix (NFLX)  21:41 Enphase (ENPH) 24:14 Tesla (TSLA) 27:59 Alphabet (GOOGL)  30:35 Microsoft (MSFT) 31:31 Berkshire Hathaway (BRK.B) 32:33 Block Inc. (SQ)  33:38 Banks JPM, GS 36:14 End. Thanks for supporting! US Stocks: Basic Elliott Wave Counts Apple AAPL  Elliott Wave 4  Corrective rally Amazon AMZN  Elliott Wave 4 Nvidia (NVDA) Elliott Wave  ii) Berkshire Hathaway BRK/B Elliott Wave 4 Alphabet GOOGL  Elliott Wave 4 Meta Platforms FB Elliott Wave iv) Netflix (NFLX)  Microsoft MSFT  Elliott Wave 4 Tesla TSLA  Elliott Wave iii) Square SQ /Block Inc. Elliott Wave 4 JPMorgan Chase (JPM) Elliott Wave 4 Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  
    • US DOLLAR TALKING POINTS: The US Dollar has dropped by as much as 3.3% from the high that was set last Wednesday and many are asking if the USD has topped. Given how aggressively overbought the greenback had become, this retracement looks to be a correction in the trend with no evidence yet of anything larger. However – price is approaching some major supports and performance around those levels will be key for determining near-term strategy. Of particular importance is the fact that the US Dollar is a composite of global currencies so the bigger question is when sell-offs in EUR/USD or GBP/USD might return and, in a related item, how will USD/JPY hold up with the pair pegged to the 145 level thought to be the line-in-the-sand for Japan’s Ministry of Finance? Oct 4, 2022 | Full article on DailyFX James Stanley, Senior Strategist
×
×
  • Create New...