“Prospects for global Economy are less then encouraging “So says IFR news and I believe a good way to characterize the market sentiment. Yields are steady to lower across the globe, 10 year yields in basis points ; Italy -6, Spain -3, Germany -1 Australia -2.2. U.S. unchanged .30 year auction later today might be weighing a bit on longer end and very light economic calendar does nothing to scare traders until then. Interest rate cut probabilities unchanged on day. Stocks in Europe higher as basic resources and Construction related stocks lead move higher,Italys Mib +.7% Dax +.5% Spoos +7 handles and nasdaq +23. Currencies Sideways, very tight range in Euro and yen Gold up a touch and Cooper steady to lower.
The real action is in Oil as “Two oil tankers were attacked in the Gulf of Oman off the coast of Iran by what appeared to be some sort of surface missiles. This also follows several other attacks that occurred over the past few weeks. On the news, oil jumped by 3.5%/$1.50 a barrel to $52.64 a barrel. “Reuters Grain market continue to be active Corn +.9%, Soybeans +.5% as weather, flooding, and shipping delays causing all sorts of problems unless you are bullish.
- Hong Kong a bit calmer today her stock market closed little changed
- China’s ministry of Commerce said they “won’t back down and will fight to the end “ BB
- Russia Putin said “Our Relationship with U.S. Is Degrading it is becoming worse and worse “ this after trump threatened more sanctions
- Keep an eye on SOX, Semi-conductor index as Micron tech down more than 5% today