U.S. China Trade Tensions Continue to escalate, driving Spoos Lower over the last 60 minutes.

(Reuters) – The Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from global chipmakers, in an action that could ramp up tensions with China.

  China’s Response.


Based on what I know, if the US further blocks key technology supply to Huawei, China will activate the “unreliable entity list”, restrict or investigate US companies such as Qualcomm, Cisco and Apple, and suspend the purchase of Boeing airplanes.

 Spoos were higher on the Day Following Europe, then Trade war news hit and Spoos dropped over 1.4% Currently down 1.17%,Nasdaq -1.4% Russell -1.1% European Bourses mixed to higher. Today is Option expiration lets watch the 2800 Level to see if prices want to rotate around this level. Retail Sales data this morning could report some of the worst numbers ever, Empire manufacturing also at 7:30 for the Month of May, I will be paying a bit more attention to this metric then Retail sales.

  Treasury Yields lower in both here and Europe, U.S. 2s-30s trading flatter today 2 year yields about 3 bps off all time lows. Gold steady as  is Dollar, Silver +2.5%.Waiting for retail sales reaction


  • EZ Q1 GDP (flash): -3.8% q/q in-line; -3.2% y/y vs -3.3% cons
  • -EZ Q1 Employment (flash): -0.2% q/q vs -0.4% cons; 0.3% y/y vs 0.2% cons(ITC Markets)
  • -Tokyo Gov: aiming to draw up roadmap for exiting lockdown as early as next week; wants to keep current restrictions in place at least until May 31; number of new cases are not yet stable
  • -US CDC: issues guidelines on steps to open schools/ restaurants/workplaces/transits
  • The Federal Reserve released the latest custody data for the week ending May 13. The value of total securities held in custody for foreign official and international accounts rose at the Fed for a third consecutive week(IFR)
  • … Thunderstorms in the Florida Straits will probably become the first named Atlantic storm of 2020, marking a sixth year in which one formed before the official June 1 start of hurricane season. (Pro farmer)
  • Three out of four U.S. small businesses have sought federal aid to cope with fallout from the new coronavirus… But a Census Bureau survey released Thursday found a much smaller share of firms reported receiving funds. (Pro Farmer
  • Bi partisan group of senators asking the Fed to buy long term debt issued by States and local Governments(BBG)

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