Morning 9-6

  • Powell Speaks at 11;30 in Switzerland  Q&A to follow his speech
  • China lowered reserve requirement for banks by 50Bps, some banks will see 100 bps cut  this creating a new round of Stimulus
  • German Industrial production missed,: -0.6% m/m vs 0.3% cons; -4.2% y/y vs -3.9% cons
  • Reliable China insiders hint that this round of trade talks could lead to a ‘breakthrough’- There’s more possibility of a breakthrough between the two sides,” said Hu Xijin, editor-in-chief of the Global Times

Big question today is whether yesterday’s adjustment in the Long Bond, Long Dollar QE forever trade is done. Strong  Jobs report feeds into this narrative a weak report  could ignite another round of bond buying and thus increase chance for 50 bps cut which currently stands at 11%. Watch out for wage data s usual.

Currently Stocks higher,Bunds and buxl rebounding  but treasuries are on the offer as is gold and silver which is down  $1.50 in 2 days  Omph

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