“Cease-fire on trade war tariffs even though Details of deal a but Murky still.” Bloomberg

 Economic data overnight Saw UK PMI drop to a four month low as production dropped to  the lowest since July 2012, Eurozone and German  manufacturing PMI’s  both missed expectations and China’s Industrial production beat expectations and Retail sales \a bit better than  Forecast

 Bad data, good data markets do not care too much about that now, FTSE +2%, Dax +.75%, Cac +1% both Spoos and Nasdaq +.5%, Bonds a bit heavy, Bunds Up slightly and gold little changed. Copper +.7% A rumor this morning that Trump and president Xi are going to sign trade deal in Davos has added a to the positive sentiment this morning. Tight range in oil overnight but Crude still hovering around the $60 handle. Fed repo operation today was for 32 days it   was oversubscribed by $4B  no need to panic. The Fed is providing, at least in there eyes, ample liquidity over the turn of the Year let us hope it is enough.

This week we see Second tier US economic data, Central bank meeting from Japan and UK and A couple of Fed speakers. A bit of Risk on Theme so far this morning