Morning 10-3

 A few news items:

  • U.S. to levy tariffs on  $7.5 B of E.U. Goods  Another front of  the Trade war ,waiting for EU response
  • Industrial producer prices in the Euro Area decreased 0.5 percent from a month earlier in August of 2019, down from a downwardly revised 0.1 percent rise in July and compared with market expectations of a 0.3 percent decline. ( trading Economics) as A result of the lower PPI  The 5y5y Inflation swap traded through 1.13%, marking a fresh record low and significantly below the 1.26% level prior to the ECB decision on September 12. ( trading economics
  • -German Final Sep Serv PMI: 51.4 vs 52.5 cons-EZ Final Sep Serv PMI: 51.6 vs 52 coms
  • -Markit on Ger PMI: The slowdown in the service sector in September was even worse than first feared, with the final results showing the weakest business activity growth for three years. A technical recession now looks to be all but confirmed( ITC markets)
  • SPX has back-to-back daily 1% losses for the first in Months
  • Tesla Deliveries fall short of Expectations
  • The EU leaning towards another brexit Extension

 Spoos Steady, Dax closed for German Unity day Stoxx 50 little changed Bunds higher as All EZ sovereign yields lower on day.Not much good news for market to digest so the Flight to safety, quality, and risk off trade prevails .Impeachment proceedings and the possibility that Elizabeth Warren could be the Dems Candidate did not help Sentiment. Today the Non-manufacturing Ism is released at 9:00 all eyes will be on to see if the manufacturing slowdown is affecting the services sector. Oil trading lower looking at eighth consecutive lower close Nat gas closed lower for 12 consecutive day, Deflation!

  • Fed speak:
  • 11:00 Mester A hawk
  • 12:00 Kaplan Neutral
  • 5:35 Clarida Dove

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