Morning 8-9

News:

  • The US will hold off on granting Licenses for Companies to restart business with Huawei (BBG) this is in retaliation for China not buying anymore US agriculture products.
  • Italy may be forced to call a new round of elections as the Coalition of ruling parties cannot govern 10 year BTPs show yields +25 bps, and prices are off lows, 30 year BTPs +18 Bps and 2 years +25 an ugly night for Italian Debt. Ugliness not contained to debt market The Mib, Italy’s benchmark stock Index -2.4% and subsector of banks -4.75%
  • Chinas Yuan Fixed weaker for 7th consecutive day @7.0136 a slow and steady pace lower .China CPI in Line but PPi missed expectations, a lower PPI brings worries of global deflation as the metric slipped below zero.
  • An UGLY UK GDP report, slipping into Contractionary territory weighing on GBP, Pound trading at lowest level in 2 years vs dollar.

A bit of Risk off theme for stocks and Bunds, Treasuries showing a small bid in the long end while the short end a touch heavy. Gold unchanged and Oil +.5%. Spooz -.6%, NASDAQ -.8% both off session lows. This week’s daily close’s for SPX   -2.98%,+1.3%,+,08% +1.88%  Dax- 1%,Cac -.8%  Europe not faring well today as issues besides trade worries are piling up.U.S. Markets would like to drift into close and call it a week that can all change with just one tweet.

PPi final sales was in line with expectations but Core PPi ,ex food and energy slipped into negative territory for first time in 2 years. Dollar tight range overnight but  trading lower by a few ticks euro small bid as  the  EURGBP +85 pips.

Economic calendar=empty

Fed calendar=empty

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