Overnight Summary via MTN News
are down across the curve in a risk-off move that follows President Trump’s
characterization that Thursday’s trade talks with China
went very well. That characterization reportedly has boosted hope that the two sides can at least reach an agreement that forestalls further tariff
increases, even if they can’t find their way at this time to a “complete deal” that covers structural issues. Separately, some budding optimism that
the UK and EU might be able to work out a new compromise on the Irish backstop, and avoid a no-deal Brexit, has also helped the risk-off tone and
given a significant boost to the British pound this morning. New York Times reported that US and China might announce limited trade deal that would prevent tariff rate increase and set rules on how China manages
President Trump says trade talks with China on Thursday went very well; meets at 2:45 p.m. ET today at White House with Vice Premier He.
Oil With a Bid as an Iranian oil tanker was attacked of the coast of Saudi Arabia, plenty of finger pointing as to whom is Responsible, regardless CL and Brent +1.4%.BTP’s small bid as Rumors that ECB may tweak there Capital key rules allowing for the possibility of an increase in Italian Bond purchases if need arises. Bunds -50 ticks following gilts lower which are down 130 ticks. Gilts down close to 350 ticks from Wednesdays highs as Brexit deal optimism grows. US 10 year yield +20 bps from Wednesdays lows to today’s Highs, the probability for Interest rate cut at end of month is unchanged from Mondays level of ~74% Gold trading down .75% silver -.3% Dollar index lower weighed down by the GBP as it trades higher by 1%, GBP +4% off yesterday’s lows . Spoos +.5%,Stoxx +1.5,Ftse +.75% Dax +2%
Today Economic calendar is Light but do not sleep on U of Michigan Confidence at 9:00, Higher confidence =Higher spending and of Course lower confidence=lower spending.