Holidays this week:
- China Closed Wednesday-Friday
- All of Europe will be On public Holiday on May 1st,”labor Day”
- 228 S&P 500 companies have reported for 1Q 2019. 78% beating EPS estimates on +6.92% growth, 61% topping sales ests. on +3.95% growth. (Mizuho)
- Elections in Spain saw the Socialist or pro-European party win resulting a dip in Spanish yields of about 2 bps.
- US-China Trade talks still face significant Challenges(Bloomberg)
- Putin Said “OPEC+ States including Saudi Arabia are complying with terms of their deal to limit oil output and haven’t signaled a readiness to exit” (Bloomberg)
- Above average rainfall expected over next 6-10 days if so you may see some short covering happen in the Corn complex corn +.9%
Plenty of Event risk this week payrolls, Fed meeting, ISM, Employment cost Index, China PMI, PCE Core today. In addition, some chatter that Investment Grade Supply (IG) will pick up this week after last week’s supply fell short of estimates.
Markets sideways so far today Dax -.25%,Spoos Unchanged, Bunds Steady ,Dollar up a bit, Gold down .3% oil down .3% but has been rallying a bit this morning but still closed lower prior 3 days. A lot of Event risk later this week but non-today. Choppy trade today expected