Theme today: Stocks higher, Bonds steady to lower, base and precious metals lower, OPEC deal in doubt =Oil lower and dollar higher. Italy Stands out in 2 ways.1 ECB said it will temporarily buy more Italian Bonds if Chaos ensues after Vote on Sunday this pledge had also worked as Floor underneath Italian stock prices as the MIB is higher by 1.5%.The strength in the MIB is providing a Lift for all European stock markets. BTP’s, Italian 10 years, spiked on the headline regarding ECB pledge at one point prices were higher by 100 ticks, they now stand +50 on day. With the exception of Bunds (think spreads) all European 10 year yields are lower. Base metals are trading lower profit taking? Sure .if you need a reason report today showed china’s House volume sales number dropping year over year.
On the political front South Korea’s president said she will let the national Assembly decide how long she stays in office. South Korea has seen some of the largest protests ever as the president is wrapped in some type of bribery scandal.
Dollar sits higher by 20 ticks Euro down 40 and yen down another 60.No one likes the Yen today as AUDJPY +40.EURJPY +70 and GBPJPY +195.very well could be month end adjustments causing yen selling. Yen set for its worst month in 7 years per Bloomberg. Yuan traded to a 1 week high vs. Dollar as Chinese authorities try to slow down the selling. GBP higher as UK mortgage approvals beat consensus
All eyes on OPEC headlines and fluctuations of Dollar today. We will see first revision of Q3 GDP, we also will get 2 fed speakers Dudley and Powell both permanent voters. Outside of Oil, markets are drifting as the trump trade running out of Gas. Month End activity still present as well. Russell closed lower yesterdays for the first time since Election
Soybeans down ~60 ticks they have closed higher for 7 consecutive days. Palm oil closed lower in Malaysia for first time in 7 days
All december commodities rolling