Morning 6-3

This week Events:

  • Trump in U.K.
  • ECB meeting Thursday, Australian rated decision June 4th
  • 13 fed speakers this week, majority speaking at Chicago Fed conference tomorrow(Powell at 8:55 A.M. on 6/4)
  • Heavy Economic Calendar this week (  ISM,Payrolls)
  • Theresa May steps down as UK prime Minister officially on Friday

Economic Data Overnight (from IFR )

  • Japanese Nikkei Mfg. PMI 49.8 – weak
  • Chinese Caixin mfg PMI 50.2 vs. 50.0 exp 50.2 prev – neutral
  • Spanish Markit Mfg PMI 50.1 vs. 51.3 exp 51.8 prev – weak
  • Italian Markit Mfg PMI 49.7 vs. 48.6 exp 49.1 prev – strong
  • UK Markit Mfg PMI 49.4 vs. 52.0 exp, 53.1 prev – v. weak  lowest in 3 years

News:

 JP Morgan Lowers year end Bund and gilt Yield forecast given “that Global macro backdrop has taken a turn for the worse “Bloomberg

Morgan Stanley sees global recession   within 9 months if Trump imposes 25% tariff on remaining Chinese Imports

Trump in a twitter feud with London Mayor and is calling on people to drop AT&T  so company is forced to do something about CNN

If Mexico tariffs are  enacted Chipotle could pass costs onto consumers

Markets Trading with  a risk Off theme but are attempting to erase overnight loses Spoos – 8 handles, Nasdaq -36  handles Dax little changed  ,after being down .7% .trade worries still front and center but Mexican president just on wires saying  A deal is best interest of both nations and Do not want confrontation with U.S. reuters. Corn steady soybeans up a bit Wheat + 2.2% .A bit of relief from the rain com [pared to prior weeks but still going to be wet. Oil bid as Bullish Saudi Arabian Comment regarding production also Speculators now starting to turn bearish on oil .oil vix Highest in 5 months

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