Morning 11-7

NEWS:

Trade deal back on track as  “China and U.S. have agreed to roll back tariffs on each other’s goods in phases as they work toward a deal between two sides”-Bloomberg .

 A bit more commentary from ITC markets China MOFCOM: If China/US reach Phase 1 deal both sides must cancel existing tariffs at the same time with the same proportion based on agreement; China/US have agreed to cancel existing tariffs in different phases; how much tariffs can be cancelled for Phase 1 agreement can be negotiated; China and US have kept in close communication, hope both sides can address each other’s concerns

Bank of England policy meeting expected to be a nonevent, surprised traders as two member voted for a rate cut, GBP dropped immediately on Statement and Gilts rallied smartly

Markets:

  Bunds trading with yields at highest levels since mid-July, prices moving towards the 200 D MA, which they have not eclipsed this year. I do not use 200D MA as a technical indicator I use it as a trend indicator, Bund yields have been trending down, a break above 200 D MA could indicate a change in trend is happening. Over the last two weeks, the treasury “up days” are less pronounced then the down days, saying to me that the buyers are less confident then Sellers. Ten year yields breaking out to upside  the last hurdle to clear is 1.90%, currently trading 1.88%. Thirty years same chart pattern the  last hurdle to clear before breakout confirmed ~2.38%. Reflation trade in full swing Spoos higher and yields higher. Less and less worries bout global Slowdown and the thought that the worst is behind the global economy giving confidence to traders to sell bonds, change is in the air

 Lean Hogs Limit bid, Spoos +12 handles likely to open cash session at new all-time highs, Nasdaq +40 handles. Gold -.3% Copper +1.4%, Crude oil + 1.67% we know the drill Trade deal on, buy Spoos copper and oil sell bonds And JPY

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.