10-18

 Tomorrow UK parliament will vote on the latest Brexit plan, the Prime Minister needs 320 “Yes” Votes to pass deal. Odds makers are predicting Deal will not pass if So Johnson may Ask EU for a 3-month extension. If deal somehow passes   “Risk on” For Sunday Open in Spoos and GBP

China GDP Missed consensus, Commentary from Trading Economics “The Chinese economy advanced 6.0 percent year-on-year in the September quarter of 2019, slowing from a 6.2 percent expansion in the previous quarter and compared with market expectations of 6.1 percent. It was the weakest growth rate since the first quarter of 1992, amid persistent trade tensions with the US, weakening global demand and alarming off-balance-sheet borrowings by local governments”  Shanghai Closed lower 1.32%, biggest drop in roughly a month. Does this in any way shape or form push China to make a Deal with US to end trade war?
 Japan CPI Missed expectations ,From trading economics  “Japan’s consumer price inflation fell to 0.2 percent year-on-year in September 2019 from 0.3 percent in the previous month and well below market expectations of 0.4 percent. It was the lowest inflation rate in seven months, mainly pushed down by lower gasoline prices. The latest reading raises the chances of further stimulus after the Bank of Japan decided to leave policy unchanged during its September meeting but left the window wide open for easing, calling for a review of prices and the economy in October.”  All central banks leaning towards more  easing

Markets:

  Oil on the Bid as Iraq oil minister says market oversupplied, they will cut production in October and November per State TV, and Issues in the North Sea crimping production a bit also blamed for the slight Push higher.Cl 1.1% and Brent + .8%. Spoos Little changes European Stocks trading a touch lower as Auto Sector in Stoxx 600 -1.2%, worst performing sector due to ugly Earnings from Renault. Gold down $5 Copper +.8%. Dollar index touched new muli -year highs on October 1 since then it has dropped 2.3% and now testing the 200 d Moving average, normally a weaker Dollar is good for risk. Markets looking for a catalyst   for next move do not think we get one today.

Fed Calendar:

  • 8:00 Kaplan Voter
  • 9:05 George
  • 10:30 Vice Chairman Clarida  Highlight of day

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