All About Politics overnight. Rumblings that Scotland will call a referendum on her independence caused selling in the pound it is down about 40 Pips, trading 124.11 area to watch below 123.47.P.M May said Unlikely that this will happen. The House of Lords will discuss the Brexit Bill this week so Brexit headlines could have an impact on the trade. Even though there will be objections to the language of the Brexit bill, House of Lords expected to agree to its verbiage. Polls over the weekend in France continue to show little chance of le Pen winning the Election. We have heard that before haven’t we? Options on the CAC stock Index are showing an increase in Volatility during election week and that market not taking anything for granted. French 10 year yields lower and this causing both Italian and Spanish yields to drop as well, the daily update on Schatz yield shows it increasing by ~2 bps. Here in the U.S. all eyes and ears will be president trumps speech to Congress Tuesday night, This Speech has markets full attention. Within his speech market is looking for A More specific timeframe of when policies will be implemented and Want specific numbers on tax cuts and possibly infrastructure spending.
With everyone waiting for trump Speech markets drifting.Nky closed lower by .91%, European Bourses sideways and Dollar little changed. Steel in China traded higher by 3% but other metals sideways. Nothing new about Copper strike.nat Gas going to Zero again as it is down 115 ticks.Pretty big deal in the Brent complex as a rule that hasn’t been triggered in 6 years will be. This rule requires that if Brent spread between 2nd and 3rd months becomes too tight Investment funds will have to sell December contracts and buy June, to the tune of $2 Billion.
- Durable goods orders today
- Feds Kaplan Speaks at 10:00