Wall of Worries grow:
- China’s State run media signaled a lack of Interest in resuming trade talks w U.S. under current threat to escalate tariffs” (Bloomberg) Source goes on to say no new information about any U.S. officials coming to Beijing for Further talks. “If there is no real concrete action by the United States, it will be meaningless for you to come and talk,” Yuan weaker again today, Shanghai closed lower 2.48%.U.S. aggressive move towards Huawei seems to be the reason for harsh China rhetoric and possible breakdown in negotiations.
- Deere Earnings this morning stock down 6.88% as they say they are no “longer cautiously Optimistic” about outlook as they cut forecast as “farmer customers shun major purchases amid uncertainty about demand”(BB).U.S. farmers do not need new tractors when no one is buying Soybeans
- Brexit back in headlines as Talks breaking down …Again between May and her Opponents
- Supposedly the pentagon will publish some images of Iranian vessels carrying missiles to back up claims of the Iran threat growing
- OPEC + meeting this weekend, will they extend production cuts or hint at increase in supply due to Iran sanctions
Risk Off, Spoos -22 handles near overnight lows, Down -200, Nasdaq -80, futures deteriorating as I type Dax -1%, Cac -.7%. Bunds +40 ticks’ yields back down on weekly lows 10 year yields -3bps trading 2.36% YTD lows 2.33%. Dollar unchanged, as is the Euro the latter has barely moved over the last month. Corn headed for best weekly gain in almost 4 years as rain and floods causing delays in planting. Copper little changed to lower trading in a tight range, Gold unchanged Silver -.7% and iron Ore in China +3.6%.Emerging market Stock Index at lowest levels since early January.
Another Day of watching out for Tape bombs as the tape driven trade continues. U of Michigan Confidence and 2 fed speakers (Williams and Clarida) are what is on schedule for today. They should not matter much