5-1

Morning Outlook from Mizuho

 Thin holiday trade. Holidays across parts of Asia region and in Europe on Friday as well as in Japan early next week. Cash Treasury trading in Asia will be closed Monday-Wednesday with Japan shut for Golden Week holidays. S&P 500 and the Chinese Yuan lower after U.S. President Trump said he could use tariffs against China. With China cash markets closed, A50 futures listed in Singapore slid as much as 5% while USD/CNH jumped as much as 0.7%.

  Apple (11.0% Nasdaq weight/7.9% DJIA weight/4.9% SPX weight) down 2.8% pre-market after it didn’t provide a forecast for the first time in more than a decade. Amazon’s stock -5.4% premarket after Q1 results after the largest U.S. online retailer saw profit shrink and said it may incur a loss in the current quarter as it boosts spending to keep logistics operations running smoothly during the coronavirus pandemic. • Watch this space. Fed’s balance sheet expands to record $6.7 trillion, BUT growth pace down sharply. Total assets held by the Fed rose by $82.8bn after $205.2bn previous week.

More USO, Oil ETF, News:

(BFW) U.S. Oil Fund to Halve Its Holding in July WTI Futures   
(Bloomberg) — U.S. Oil Fund will cut its holdings of July WTI 
futures to 15% vs a previous target of 30%, according to its   
website.                                                       
Fund will also hold 25% in December WTI futures vs 15%         
previously                                                      
USO to invest 5% in November WTI futures                       
New target weightings as follows:                              
July, August, September, October: 15%                          
November: 5%                                                    
December: 25%                                                  
June 2021: 10%

 Commentary regarding President ‘s Executive order on Forcing Livestock Plant employees back to work(Drovers.com)

Cattle and pork industry groups praised President Trump’s executive order this week invoking the Defense Production Act to mandate that packing plants continue to function. It was a sign of support from the administration and acknowledgement that America’s protein industries are in crisis.

Unfortunately, Trump’s order will do little to ease the bottleneck currently plaguing beef and pork producers. Packing plants can’t magically return to 100% capacity overnight. The coronavirus pandemic has already inflicted its wrath on America’s protein industries and the recovery will be slow. Slower still if you have cattle and hogs that need to be harvested.

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