*RTRS Source US/China have started to outline
commitments in principle on the hardest issues in the trade dispute marking the
most significant progress to date towards ending the trade war; negotiators are
drawing up 6 MOUs covering forced tech transfer & cyber theft; IP rights;
services; currency ; agriculture & non barrier tariffs to trade
*Fed’s Clarida says lack of data
still clouds U.S. economic forecast– it is not clear how much of growth slowdown the
United States is currently seeing, in part because of incomplete data following
the U.S government shutdown, Fed Vice Chairman said in a television interview
aired on Wednesday.
* The
release of the monthly PMI data from Europe.in the aggregate reported In-line
to slightly better, the only sore spot and a big one is Germanys Manufacturing
47.6 vs. f/c 49.8.Dax took a hit on this release.
The weakness in European Stocks continued
after comments from Austrian Central Bank president and hawk, Nowotny he said
no need for more Liquidity and ECB should have acted more quickly and raised
rates. Dax further hit as the ECB minutes showed that members were not excited
about issuing a new target loan program
Both Stocks
and Bonds lower this morning, Bunds reacting to a break in support levels being
helped by some optimism regarding china trade news, both treasuries and U.K.
Gilts following the lead of Bunds. Yesterday’s FOMC minutes not as Dovish as
markets have been pricing in as no clear signal of an Easing bias was given in
fact I believe they left door open for rate hikes to continue,if data cooperates.
Dollar index steady the one standout currency is the Aussie dollar it is on the
offer vs. all majors today as China has banned coal imports from that country.
Commodities
mostly lower Copper -.5%, Oil steady, palladium -1.4% and gold -.3% markets
trading without a macro theme so far today. China pledged to buy $30B more of
US agriculture goods Soy +1%,Wheat +
2% Corn +1.8%.A handful of Economic data and a bit of Fed speak could be drivers
of today’s flows.
Calendar:
- 7:30 Durable goods, Jobless claims, Philly fed
- 8:45 market PMI
- 9:00 LEI and Existing home sales
FED speak:
- 9:15 Williams
and Daly discuss Inflation
- 11:00 Vice chair Clarida
- 12:30 Bullard
and Quarles
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