Morning 9-19

News:

Oil prices rose on Thursday amid geopolitical tensions in the Middle East after Iran’s foreign minister Javad Zarif did a series of tweets about the attack on the center of Saudi Arabian oil production and Trump’s instruction to rise sanctions on the country. Also, Dow Jones reported that Saudi Arabia asked Iraq’s national oil company as much as 20 million barrels to supply its domestic refineries, rising concerns about the ability of the country to recover from the attacks. US crude oil rose as much as 1.9% to $59.11 per barrel while Brent crude went up 2.4% to $64.97 per barrel .Both Iran and USA cyber rattling overnight via tweets, this is not helping calm the situation

Overnight repo Operation being conducted by Fed this morning and it appears to be calming the market OVERNIGHT REPO RATE QUOTED AT 1.95%-2.00% IN EARLY MORNING TRADING: RTRS

OECD cut growth Forecast to Lowest in a decade (BBG)

U.S. Steel down 9% after ugly earnings and bearish outlook

Expectations for Further Fed rate cuts are dropping after yesterday’s FOMC meeting, as Roughly 50 bps of cuts being priced out by year-end

Trump Said Powell’s job is safe

Central bank Activity overnight

  • As expected Bank Of England left rates Unchanged
  • The central bank of Taiwan left its key policy rate unchanged at 1.375
  • The Norges Bank raised its benchmark interest rate by 25bps to 1.50 percent during its September meeting, the third increase this year, saying that underlying inflation is close to the inflation target while growth in the Norwegian economy remains solid and capacity utilisation is somewhat above a normal level
  • The Swiss National Bank held the SNB policy rate at -0.75 percent during its September meeting
  • Bank Indonesia reduced its 7-day reverse repo rate by 25bps to 5.25 percent during its September meeting, in an attempt to boost economic growth amid low inflation expectations

 Markets looking for A new driver and likely will turn back towards trade issues. Chinese representatives are in the US for preliminary talks   so hopefully they go well. Southern Portion of Texas hammered with rain causing Beaumont Texas refinery to shut, thus  gasoline bid. Dollar trading -.3% a bit of surprise after hawkish fed, Gold, Bunds  and Silver a bit lower  as are Stocks but treasuries higher,  markets lacking a central theme so far today. Economic calendar light   today.

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