Morning 6-25

6 months till Christmas for you Holiday types

 A bit of Risk off in markets, a list of reasons:

Iran Says Diplomatic path Shut between U.S. (BB)

Growing chorus that This Saturday is meeting between Trump and Xi will not break any new ground, so U.S. officials and Analysts are down playing expectations for any near term agreement

G20 meeting in Japan and as it happens Trump thinking about withdrawing from a long-standing defense treaty with Host Country

 A handful of Chinese banks may be sanctioned by USA due to activity with North Korea, bad timing for this to occur (BB)

China is considering labeling FedEx as an “unreliable entity”

Markets:

U.S. 10 year yields once again dipped below 2% yield but momentum lacking, Gold 6 year high  +$13,+.5% Bitcoin Futures +4% closed higher yesterday +9.67%, Bund yields dipped below last week’s lows traded as low as -.33% before rallying a bit. Shanghai closed lower -.87%, Hong Kong -1.1%. Currently Dax unchanged Spoos -4 handles NASDAQ -15 unchanged. Copper +1%, Nickel +1.19%, iron ore in china closed down -.25%. The battle of the 200 D  Moving averages continues with the Euro Moving further above and the Spot Dollar Moving below, So far DXY  is the winner trading .84%  below  it whereas Euro +.56% above it. The Yen strongest since January vs, Dollar Corn back on the Bid  as the Condition of the Corn crop  lower than expectations  as is wheat , this from the weekly USDA update. A quick note for Copper net longs on LME lowest in over a year time to rally then. (Bloomberg)

 Today we will hear from Chairman Powell (12:00) do not think much has changed from last week but he could caution markets about getting ahead of themselves, a big If. New home sales tops the light Economic calendar. Yesterday’s 3 and 6 month bills tailed, a rare occurrence for short maturities (IFR news) maybe a note of caution before today’s 2 year auction at the least maybe market pay bit more attention to it.

President  trump and Xi to meet Saturday per Bloomberg

Calendar:

9:00 new home sales, Richmond fed survey and Consumer confidence

11:00 Bostic

12:00 Powell

2:30 Barkin

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