Everybody Exhale as trade worries move to simmer from boil… Stocks higher, Bonds lower, Dollar unchanged, Oil Higher, Bitcoin above 8000, Gold off a touch and grains well bid. Trump optimistic on Trade deal as he plans to meet with president Xi next month, I think traders want to focus on something other than trade talks so as Long as no negative tape bombs I think rally may hold. Speaking of tape bombs Trump did put together a list of about $300B worth of Chinese goods that he will impose a tax on if situation with China worsens. Spoos +22 handles, Nasdaq +77 Dow +175 Dax +.6%, Shanghai closed -.69% From Bloomberg ‘Buy the Dip’ Is Back as Goldman’s $1 Trillion Manager Pounces “
In Germany, Investor Confidence dipped for the first time since October (BB) and the expectations gauge went negative as Trade worries weigh. Euro does not care one bit about anything as the Currency has 25-tick range and appears to be oblivious to anything happening in the world. Bonds unchanged on day stuck with a 26 ticks range. Supposedly A drone Attack has halted pumping on a major east –west pipeline in Saudi Arabia, of course all fingers point to Iran thus oil Higher +1.3%
Corn planting well behind 5year pace due to the Wet weather and fields Corn +32 ticks 2.2% ,Soybeans higher a bit of optimism about China Doubtful But +1.87%, trump has pledged to make up loses to farmers by pledging billions of Aid. Copper steady so far today.
A growing number of Fed bank presidents have been talking about the possibility of higher inflation due to higher tariffs this is something we need to monitor as it could impact rate cut expectations, New York president Williams the latest to speak about it this morning.
Import prices were lower than expected no Evidence of higher prices, yet from tariffs. Small business optimism Index 103.5 vs f/c or 102 within the number business who expect better economy jumped to highest level this year.
9:00 PM China Industrial production and retail sales