Regardless if we think Powell was hawkish yesterday markets are still pricing in at least one more cut by year-end. These odds will be tested by todays ISM report and Tomorrow’s payrolls The dollar index continues its press higher, working on a 10th consecutive higher close. Trump Administration does not like this, saying fed should have signaled a”lengthy and aggressive” cutting cycle (WSJ) but no Complaint’s out of EU. Commodifies not much of fan Gold -1.4 Silver ,Platinum and palladium all done >2% CL -.9% and Iron Ore in China down 2.45%.Bank of England left rate unchanged as expected and Qualcomm gave a downbeat sales forecast stock -7%. The flattening move or steepener unwinds continue today as 2 year yields steady to higher and 30s bit lower. Spoos traded a bit heavy late yesterday evening but followed Europe higher once the Bourse opened as stoxx and Dax traded steadily higher overnight, Lower euro=Higher Dax A Nat gas pipeline explosion in Kentucky providing a small bid in the complex pushing gas higher for consecutive day.
Spoos little changed, Dax +.2% bunds steady