Morning 4-23

When Ugly Numbers are expected markets pay little attention, European PMIs Released earlier this morning and they were worse than expected.

EZ flash Mfg PMI 33.6 vs 39.2 expected and 44.5 previously so another big drop. Services at 11.7 vs 23.8 expected and 26.4 previously with the composite at 13.5 vs 25.7 and 29.7 previously

German flash Mfg PMI 34.4 vs 39.0 expected and 45.4 previously so another big drop. Services at 15.9 vs 28.5 expected and 31.7 previously with the composite at 17.1 vs 31.0 and 35.0 previously. Obviously very poor but the market doesn’t really care. (IFR News)

   Choppy trade in Stock So Far Today Jobless claims this morning minor focus. for traders, but this is likely keeping alid on Activity. Oil higher again this morning June Contract still below $20   so nothing to get excited about. Target said they are on pace for a 7% growth in sales this quarter, Credit Suisse putting aside $1 Billion for write-downs and bad loans, two days ago Italian yields moved aggressively higher yesterday the invisible hand of the of ECB was a buyer. Also, yesterday Spanish yields turned aggressively higher, today    moving lower likely again due to ECB purchases. As A note yesterday saw, per Bloomberg Eurodollar options trading indicting Negative rates, Stories this morning paving the way for Possible negative treasury rates, once thought never going to happen  is appearing in more and more stories. I do believe some type of Congressional approval or treasury Approval for rates to go negative. Im not 100% sure but I will check

   Georgia opening some small business tomorrow A litmus test for Country, Dr. Fauchi per Bloomberg pleading with Governors, mayors to take it slow while going through this process. Countries and The markets collective eyes will be on the State watching for progress. New York fatalities lowest in almost 3 weeks, But Spain’s cases and Fatalities spiked yesterday.

  • Spoos Unchanged Bunds 100 tick range sitting unchanged, Gold +.3%, Oil +16%, Brent +7% gasoline +11% and Copper +.5%. Short end treasuries a touch lower long end a bit higher

News:

  • -Sources: China to purchase up to 10m tons of Soybeans, 20m of corn, 1m of cotton; bulk to be sourced from US (ITC markets)
  • Mnuchin anticipates most of the economy open by early August (BBG)

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