morning 8-30

German CPI in Line/Higher and Eurozone Economic Sentiment at Multiyear high has done little to push Euro higher. Yesterday’s move above 1.200 may have been a little to fast too soon. Tensions between US and North Korea have not escalated beyond already high levels?? Is being tossed around as the reason for a Firm Dollar and a tentative Risk On sentiment overnight. The JPY /South Korean Won lower today, I use this as many do as the measure to determine tension in the region. If it trades lower tensions are easing. All European Stock markets are trading higher, Kospi closed +.3%, NKY +.75.Spoos little changed to higher. Gold in and a tight range but still above $1300.If it wasn’t for Hurricane Harvey, The talk would be about the waiting game for payrolls.
It finally stopped raining in Houston but flood damage is still present and Not fully known . 75% of refining capacity is shut in in Texas and as a result gasoline Futures are +22% From Fridays lows. Crude continues to trade lower as Demand destruction will continue for foreseeable future. Until Flood waters recede ,refineries are inspected and ports are reopened it will all be speculation on how much damage there actually is .Markets are pricing in the worst as they normally due.
Just released ADP was stronger than consensus a 1.5 Standard deviation beat. I will be on lookout to see if there are any revision higher for Fridays payroll Number .GDP release is first revision for Q2 data and still can provide some Movement for markets. Trump will unveil his latest tax proposal which will be short on Details but Long on Enthusiasm. Goldman Sachs has lowered odds to 35% for Government shutdown
Markets were trading with a subtle risk on attitude only strengthened by ADP report. All eyes on GDP here at 7:30.

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