Morning 8-29

Risk On!

Headlines:

  • China MOFCOM: Wiling to resolve trade issue with calm attitude; asks US to show sincerity, concrete action and to meet China halfway; both trade teams have been in touch; China has ample retaliatory measures; both sides are discussing previous talks; most important thing is to continue negotiations; if China officials visit US in September both sides should create conditions for progress (ITC markets)
  • BBG: US Tsy Sec Mnuchin: US doesn’t intend to intervene in currency mkt’s for now, but signaled he’d prefer any future moves to be coordinated with the Fed & global allies; Ultra-long US bonds 50 and 100 year maturities  are under very serious consideration. Thus the drop in the Long end yesterday afternoon and the continued weakness today 30 and 10  year yields  higher by 1 bps or so.
  • German Inflation data Missed to down side, Strengthening case for Stimulus from ECB,  Euro steady

Spoos +29 handles +1% Closed higher yesterday by +.85 Nasdaq +1.23%   Italy’s Mib +2%, Dax +1.2%, Bunds -20 ticks   Copper +.9% Silver impressive run continues +1% Soybeans and corn +.6%. As Long as trump does not tweet risk Sentiment should stay intact. Second look at Q2 GDP is of minor importance.

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