Rollercoaster ride for Spoos overnight gapped open lower, Followed Asian Stocks higher and then Sold Off shortly after European Cash markets opened. Spoos 132 handle range overnight, Nasdaq 432 handle range. As I type Spoos -13 handles, Nasdaq little changed Stoxxs 50 -.6% and Dax -.2%. Dollar -.5% trading 97.50, What a move lower over the past week as prices were knocking on the 100-handle door just a few days ago. Short squeeze continues in Euro as it is +100 Pip in the Spot trading 1.1123 Euro is up ~3.25% ,3 big handles from 1 week ago very impressive. Speaking of Impressive from Bespoke Investment” Currently sitting on the largest three-session decline in two-year yields since October 2nd, 2008. TARP was announced the next day, also the session when WFC bid for Wachovia. NKY closed higher by .95%, Shaghai by 3.15%, China’s CSI 300 +3.28%, S A New round of stimulus expected out of China and belief that Cases have peaked in China. US yields Collapsing again 10 years at 1.08% ,2 year yields at .80%Oil higher as OPEC pledges to cut production , Gold back to safe haven bid for now.
Wednesday morning G7 and Eurozone finance Minister will hold conference call to “coordinate their response” markets believe some type of Global interest rate cut or Stimulus package will be announced. I am still looking for exact time of call
• European union has raised its risk level for the virus from moderate to high
• OECD cut global growth forecast from 2.9% to 2.4% if realized would be slowest growth since 2009(BBG)
• Iran cases jumped by over 500 stands at 1501, with 12 deaths, the most outside of China
• 2 deaths reported in Washington state
• China’s manufacturing PMI data Ugly expected 46, Came out at 40.3
Good news and likely one of the reason Stocks closed higher in Asia:
Bloomberg) — The Bank of Japan says it offered to buy500b yen in government bond repurchase for future delivery.
- Announcement follows statement from Governor Haruhiko Kuroda that it’s closely monitoring future developments and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases
US Ism at 9:00 is a big deal all eyes on whether it is a sub 50 reading or not.