Morning 10-28

A Busy U.S. Economic Calendar this week With  FOMC,Ism , payrolls and First look at Q3 GDP,Out of China PMI numbers Wednesday night 8:00.Also over 150 SPX companies to report earnings  this week Apple, Facebook and Alphabet some of the highlights.

A few Notes:

The  Bank Of Japan meets  Wednesday night and Any Chance of a rate cut are pared back aggressively as reports over weekend from WSJ indicating the BOJ likely to refrain from any cuts/new stimulus  this month, Japan’s  2 years yields +2.3 bps on day.EU has Granted  UK three  month Brexit Extension this too weighing on Bunds, Gilts and treasuries. Both U.S. 5s and 10-year yields have broken out of ranges topside and thus providing a technical reasons to sell Treasuries. Watch 170.73 in the bunds, A break below this level could accelerate loses and drag treasuries along for the ride.Spx a whisker away from all-time highs, Spoos +8 handles, Dax +.4%,NKY  Closed +.3%. Crude little changed to lower Bloomberg reporting Oil vix at 6 week lows,  Energy Secretary Perry said yesterday “Global markets are awash in oil”-(BBG) this not helping the oil complex .Copper  trading in a tight range up a bit, Gold and silver steady. Comments from China saying that text for first phase of trade deal are “basically completed”(BBG) lifting spirits and creating a bit of a Risk On sentiment   a tentative one.

News:

  • Argentina Election saw the challenger Fernandez defeat the incumbent Macri, the Central bank announced they will Tighten limits on purchase of dollars, worries about defaults growing.
  • Over the weekend U.S. Killed the leader of ISIS, I will be watching to see  if any retaliatory measures are taken
  • U.S. Economic calendar busy this week but just not today, 7:30 trade balance only release
  • Bitcoin +8.4% in futures after closing higher 16.2% on Friday, Some point to China endorsing Blockchain as reason for surge

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