Asian Stocks Closing levels:
Hong Honk +1.26%, South Koreas +1% Shanghai +.39%
The Excuse given for the Run up in “risk” is the belief once again the Spread of the Virus has peaked, Even though death toll has reached 1000 people. Chairman Powell speaks today and is unlikely to offer much about future FOMC policy as the Corona Virus make all and any predictions about Future growth invalid, we will have to wait and see. Powell will likely say US Economy resilient and Inflation still a bit weak but outlook depends on how quickly China rebounds. Helping stocks a bid in Sprint +62% after a judge likely to approve merger with T-Mobile
Fixed Income trading lower, 3 year auction today, Light volume overnight due to japan On Holiday and of Course the Bid in stocks all weighing on prices. Other “flight to safety assets” Gold and JPY are trading a bit soft. Oil higher +1.6% Brent +1.8% following spoos as OPEC still trying to convince Russia to cut production, Copper + 2 handles,.75%
News:
• President trump calling out Powell again”: We should have a lower Fed rate right now; Fed Chair Powell let me down; Fed raised rates too quickly, cut too slowly
• Pres Trump: Next trade front could be Europe
• -@globaltimesnews: According to a GT poll of 17 economists and experts, 7 said #China’s imports from the #US may fall 10-20% in Q1 amid #coronavirus; 4 believed the drop would be over 20%; 3 expected growth instead of drop and the rest said it is hard to say
Theme: A bit of Risk On for Now Let’s See if Powell gives markets a bit of Good News
