Morning 6-24

News and notes:

  • European stocks weaker led lower by Auto sector as Daimler cut profit Forecast for third time in a year (BB) Autos -1.1% as a sector 15-19 sectors trading lower.
  • The Euro trading above 200 D MA for first time in a year, trading at 3-month highs, This too applying small amount of pressure on European stocks
  • From Mizuho    “Interesting that given all of the angst of Trump wanting to “demote” Powell, the Fed itself reminds us that Truman asked for, and got, the Fed Chairman’s resignation in 1948.”
  • The president announced further sanctions on Iran, Oil trading Higher again today after closing Higher by 9.4% last week
  • Gold higher again today  +.6%, Bitcoin Traded over 11k over weekend moving some 13% since  late Friday(BB)
  • Grains trading with a bit of a bid, KC wheat +.7% as weekend hailstorm destroyed crops on ground.Chining imported near record amount of both corn and meat during the Month of May
  • Treasury will auction $113 B in in short-intermediate paper this week

  From IFR regarding U.S. China talks this week;

Second on the list is the US/China trade story. President Trump and President Xi are scheduled to meet later this week (June 28-29) at the G-20 summit in Japan. That is the good news. The bad news it appears is that the two sides’ differences on trade and technology transfers have only widened over the last number of weeks. This suggests the likelihood of a comprehensive deal has been meaningfully diminished. The question now is whether the two sides will cut their losses, agree to what they can for the time being, and table the other discussions for a later date. Such an outcome would prompt a risk-on move as all the markets want is for this distraction to go away.

 Markets:

 Dax -.5%, Stoxx 50 -.3% Spoos +6 handles NASDAQ +24 Bunds +50, Bonds +20 ticks’ still 27% chance of 50 bps cut in July from Fed. Copper little changed as is silver, palladium +.8% and RBOB +1,4% as last week’s refinery fire still causing problems .A light Economic calendar today but take notice of the 9:30 Dallas Fed manufacturing Index and see what it has to report about Inflation. New home sales tomorrow and then PCE on Friday are the economic Highlights. We will hear from a number of fed speakers with Powell speaking tomorrow at Noon about Monetary policy and Economy. Lastly G-20 meeting Thursday-Saturday in japan, Plenty of opportunity for trade comments not just w China but with EU and japan as well.

 Theme for today’s trade is Easy Fed, Easy money

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