Morning 11-30

News of Note: OPEC is close to a deal to cut production. Nothing official yet but WTI is higher by 7%, Brent by 7.5%, gasoline +5%.Deal on table is a cut of 1.4Mln barrel. The other big item overnight is China Central banking voicing concerns about drop in yuan and Capital flight. Central bank stepped in to prop up currency and has also created new measures to Slowdown commodity speculation. Steel and Coking coal had near historical drop in prices today, Steel -5.7% and Coal -7%.China worries starting to percolate as Shanghai closed 1% lower and short term rates continue to move higher. Higher oil is=Higher energy stocks as the group is higher by 2.7% in Europe helping all stock markets trade higher.
Bonds in Europe mixed with Bunds higher and Italy, Portugal and Spain all lower.US treasuries Heavy as Higher Oil =Inflation worries. Month end activity also to blame. Dollar higher as today’s Economic data was inline /better. ADP a solid beat of expectations at 216 vs f/c 170.
Watching OPEC comments today and Month end adjustments.
A few things:
• Trump as Appointed EX Goldman member Mnuchin as treasury secretary. This morning he said he is in favor of issuing longer term Bonds
• Wilbur Ross will be Commerce secretary
• Grains following oil higher
• Copper not following the Move lower in Steel and Coal

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