Lackluster the market theme overnight:
German GDP in line,-.1% w forecast, The export Component down 1.3% for biggest drop in 6 years ,Trade war not a good thing For German economy. China announced a handful on Auto measures Xinhua: China to loosen & remove car buying limits; China to encourage banks to lend to new energy vehicle purchases & new home appliance purchases , which provided a lift to the European Auto Sector, which is trading 1.4% higher as I type. Dax +.5% Italy’s Min the upside leader +1.1%, Oil and Copper both Higher by 1%, Spoos little changed and dollar soft. Gold A small bid as it tested yesterday’s lows and found support. In the treasury Complex, the 2s10 yield curve trading below last week’s lows and at the largest inversion since 2007. Risk markets not too concerned with if any signal the 2s10 is giving today. Today 30 year yields -3.5 Bps 2-year yields -.4 bps.
Overnight markets appear to be drifting trying hoping to have a smooth finish to the unofficial end to summer. Trade comments –China Foreign Min:” Haven’t heard of telephone call on trade between US/China; hope US can stop its wrong actions & create conditions for talks” China People’s Daily Commentary: don’t misjudge China’s resolute willpower & ability/determination to firmly retaliate if the US follows through with higher tariffs https://bit.ly/33VrkWt (. ITC markets) someone is lying about the phone calls I will say both sides are stretching the truth a bit. Always one tweet away from market fireworks, Economic calendar light today Consumer confidence at 9:00
- ECB’S DE GUINDOS SAYS OUR MONETARY POLICY IS DATA DEPENDENT, NOT MARKET DEPENDENT || SAYS INDICATIONS FROM MARKET EXPECTATIONS CANNOT REPLACE OUR POLICY JUDGEMENT
- -Norway’s $1T sovereign wealth fund will give a steer today on whether they’re about to pivot their $700b stock portfolio more towards US markets(ITC markets)
- A private Forecaster raised production levels for both corn and Soybeans also the good/Excellent rating for beans was higher than expected beans -.9%