Let’s start with a comment from BlackRock’s global chief investment strategist “we have greater confidence that inflation will meet central bank targets, with some scope for overshooting in near term”. Overnight in Europe Inflation numbers were better or less bad all across Europe, EZ GDP was the highest reading in 3 quarters. This has many starting to talk from ECB. Less than an hour ago Trump Trade advisor said Germany is taking advantage of a weak EURO. Euro jumped 60 pips on comments. I am just repeating what many are saying Trump does not want a strong Dollar! Trumps Immigration Policy had a bigger impact on NASDAQ yesterday as a handful of top tech companies have workers Impacted by policy. Something to remember if this Continues to be an issue.US Political Volatility on the rise and quite possibly here to stay.
This Political volatility has been a benefit for gold as it climbs for a third consecutive day, still in a downtrend until it trades above 1223.it hasn’t really caught the attention of the treasuries yet. IFR News points to the Increase in Inflation and Inflation expectations as the Driving force for Bonds, Not the political landscape. The harder US politics become to predict the more expensive it will be to hold Dollar denominated assets.
Yesterday the Bank of japan left rates and QE Unchanged as Expected. They said risks are still tilted to downside and no talk of taper. In the Press conference to follow statement, BOJ Kuroda said lasts week increase in Bond purchases was not going to be the Norm and will only be used if Yields move away from zero. NKY didn’t like this and closed lower by 1.69%. European Stocks are mixed Most bourses are up a few ticks. Month end today so a good portion of the action could be related to this event.
Oil is little changed to higher this morning. Most headlines are bearish overnight. Hamm. Nat Gas lower as winter is almost over.
Plenty on the political calendar so I will be keep on twitter as usual
• 9:30am: Senate Judiciary Cmte to vote on nomination of Sen. Jeff Sessions, R-Ala., for attorney general
• 9:30am: Senate Energy and Natural Resources Cmte to vote on nomination of Rep. Ryan Zinke, R-Mont., for Interior secretary, and former Texas Gov. Rick Perry for Energy secretary
• 10am: Senate Finance Cmte to vote on nomination of Rep. Tom Price, R-Ga., for HHS secretary
• 10am: Senate Health, Education, Labor and Pensions Cmte votes on nomination of Betsy DeVos for Education secretary
• 10am: House Energy and Commerce Cmte holds hearing on Medicaid
• 12:20pm: Senate to vote on nomination of Elaine Chao for Transportation secretary
• 2pm: House Oversight and Government Reform Cmte hearing on “Fraud, Waste and Abuse under the Affordable Care Act”
• 8pm: President Trump says he will announce his Supreme Court nominee from White House