ECB morning

ECB Decision:

  • *LOWERS DEPOSIT FACILITY RATE TO -0.5%
  • *LEAVES BENCHMARK INTEREST RATE UNCHANGED AT 0.000%
  • *CHANGES ITS GUIDANCE ON INTEREST-RATE POLICY
  • *TO BUY EU20B OF DEBT/MONTH FROM NOV. 1
  • *TO BUY BONDS AS LONG AS NEEDED
  • *RATES AT PRESENT OR LOWER LEVELS UNTIL ROBUSTLY CONVERGES

The Dovish Surprise is the “to buy as long as needed” Italian 10 year yields -19Bps, Ireland, Belgium & France -11bps. 30 year yields in Italy -13 Bps Germany -10. Details of what type of bonds and if they want to bend the rules to buy more certain Countries Sovereign Bonds will be given at 7:30 press conference. European Bourses higher post ECB decision but gains tempered as Banks try to figure the impact on profits due to the Tiering of Rates ECB announced.

Other News:

Trump Delays China Tariff Increase as Trade Talks Approach- “At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars’ worth of goods (25% to 30%), from October 1st to October 15th,” Trump wrote on Twitter on Wednesday U.S. time. (Bloomberg)

Surge of inflows into US small-caps stirs hope for sector– Rebound comes amid a broader rotation into ‘value’ stocks(FT)

Per Bloomberg Chinese buyers are inquiring about US pork prices    lean hogs Limit bid Pre open

IEA said that OPEC faces a daunting market surplus in 2020 as OPEC + members meet to discuss the state the oil market. No new production cuts announced but group said “the will curb output via Better compliance” to already stated production cuts (Reuters)

Mnuchin”seriously considering a 50 year bond next year” CNBC

Calendar:

7:30 CPI also Draghi press conference likely a spike in Volatility to occur

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