morning 8-26

Roller coaster Ride Overnight for Stock markets, Spoos 78 handle range ,Nasdaq almost 300 handles and Dax 250. Bearish open yesterday turned around by Trump saying, “China had approached U.S. officials to propose further trade talks. There were two “very productive” calls from the Chinese (Bloomberg). Chinese Vice premier on the wires saying  “willing to solve the problem through consultation and cooperation with a calm attitude,” (BBG)   All is  well now in trade Fight  I guess, Currently Spoos +12 handles, Nasdaq +42,Dow +165  Dax +.4% Asian Closes NKY  -2.17%, Hong Kong -1.9%, Shanghai -1.74%

 Treasuries have maintained the bid even with equity rally 10 year yields touched new multi-year low 1.44%, all maturities less the 30 year have made New Year to date multi-year lows in yields 30s though have failed to take out last week’s lows of 1.91%. Dollar up a touch, yen losing the flight to quality bid -.55% as is gold Unchanged on the day after touching a 6-year high. Copper steady to higher oil higher as it too trade in a hefty $2 range overnight.

 Some good news out of G7 meeting US and japan have agreed upon a trade deal where Japan has agreed to buy more US corn and US cattle and hog producers to gain more access to Japan’s market. Also rumored a Deal between US and France where trump will not tax French wine in return for no new taxes on US tech companies .UK closed for end of summer holiday

 Light week for US economic releases on Thursday second look at Q2 GDP is the highlight, Treasuries rolling as is all September commodities. One Fed speaker on schedule for the week.

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