Morning 5-7

A bit of Risk On….

  • As Chinese Exports beat Consensus Handily. Exports on Y/Y basis were +3.5 % vs Forecast of a Decline of 6.6. Trade surplus double from March to $45.3 B. Not A surprise, Medical Exports jumped 50.3% vs 1 month ago.(BBG) Devil in the details commentary suggested that Demand not as Strong as Numbers indicate as business may have been playing “catch up” to past orders that weren’t filled.
  • Not all Good news From China (SMP) Coronavirus: China could cut US debt holdings in response to White House Covid-19 compensation threats, analysts say  Recall that US has threatened to Stop Interest payments to China if they Didn’t come clean on Virus origin
  • Bank of England Left QE quantity on unchanged but there were 2 dissenters, so thoughts are More QE to come, possibly June.
  • Nursing Home residents may account for one-half of all U.S. Coronavirus deaths (Wapo)
  • (Bloomberg) — Saudi Aramco raised crude pricing for most grades to Asia, giving a clear indication there are signs demand is improving as the biggest oil-consuming market starts to recover from coronavirus closures. CL +10% Brent +6%

  •  Norway Cut rates to Zero
  • The Corn market is taking note of frost chances in the Corn Belt Friday through May 12.

Markets:

 Spoos +1.5%, Nasdaq +1.48% Russell +2% Stoxx +1.2% Dax +.83% US 2s30s bullish steepner  today as Treasuries prices trading with a small bid. Nat Gas Steady after a wild 2 day trade as Prices were whipsawed due to a major  pipeline disruption that turned out to be not as severe as first thought  Gold +.5% Copper +1.3% Silver +1%. 7:30 this morning we will see Jobless Claims the hope is that the trend lower continues, Quarterly Unit labor Costs also, Weekly grain/Livestock exports to monitor Chinese demand. Brazilian real down 40% ytd VS usd

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