China Cut one of her short term rates for the first time in four years from trading Economics “The People’s Bank of China (PBOC) unexpectedly lowered the 7-day reverse repurchase rate to 2.50 percent from 2.55 percent on November 18th 2019, the central bank said on its website. This was the first such reduction in over four years, signaling that policymakers are ready to support the slowing economy”
Market was searching for a theme this morning as stocks drifted higher and Bonds traded lower and they found one MOOD IN BEIJING ABOUT A TRADE DEAL IS PESSIMISTIC DUE TO U.S. PRESIDENT DONALD TRUMP’S RELUCTANCE TO ROLL BACK TARIFFS- CNBC Gains in Stocks evaporated as did losses in Bonds. Where do we go from here? I believe a Kudlow or some type of White House tweet will rectify this situation but have not seen one yet. Any gains created by the China rate cut now forgotten. Economic calendar light today and all Week in U.S., Europe will report PMI data on Thursday and it will be watched closely.
Earning season winding down with a handful of Retailers reporting this week indicating the end of Season. I thought for a day or two market could escape talking about China/US, but I guess not. Nat gas -3.5% Milder weather forecast Crude -.7% Brent -1% Copper -.3% victims of the Risk Off move.
President trump backing off on Vaping Ban and Elisabeth warren backing off on Medicare for all is providing a lift to stocks in these Industries