Morning 4-26

Stocks, Bunds, and bonds trading higher this morning. Facebook trading +5% this morning after real solid earnings ECB meeting and press conference today expected to lean a bit dovish providing a bid For bunds and thus bonds. Brent and Crude with a bid, The Former +.8% and the latter +.6%.Comments from French president Macron hinting that Trump likely will back out of Iran deal has brought a Bid back to complex. Retail Gasoline prices have risen 10% over the last 2 months and will continue to move higher as the calendar moves into peak driving season. These prices excluded from the Core Inflation calculations but still should catch FOMC attention and politicians. The higher prices can and will impact consumer discretionary spending so if impact on inflation ignored the slowdown in spending that may come from higher prices at pump should not.
European 10 year yields all lower Germany, Spain, and Italy all -2.2 Bps. percent changes see Bunds +.28%; long end Buxl +.7%. Stocks in Europe show Dax a bit higher, MIB +.7% Spoos +.3% and NASDAQ +.6%.Earnings deluge continues today with 68 SPX companies reporting this morning and Amazon, MSFT and Intel after the close. Dollar little changed as markets await Draghi press conference for clues on how concerned ECB is on Euro strength.
Today we do get Durable goods a second tier number impact if any on trade will be short lived.
Lower rate trade Theme today

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