Morning 6-12

  In todays markets major moves and thus corrections happen in days even hours compared to historical moves which sometimes lasted a few weeks .Yesterdays price action saw Russell settle 7.6% lower, Down 6.9% and SPX -5.89  Some of the largest daily loses since March, today buy the Dip mentality is back and the correction  might just be over. Currently Spoos +1.6% Nasdaq +1.4%, Stoxx 50 +1% Mib +1.1% but Dax somewhat of a laggard +.4%.All 19 Stoxx 600 sectors positive today.30 year yields settled ~7bps lower yesterday +~4 today. Dollar index had one of her best days Since March as well Settling yesterday +.81%, today steady to lower.  CL down 8.23% yesterday +.4% so far today. Lets see if the Buy the Dip mentality can hold true for remainder of day as yesterday’s Virus fears obviously have disappeared.

Virus News :(ITC markets)

  • UPDATE: global total cases >7.5m; Russia’s total cases hit 500k
  • -Global (vs y’day): Total cases 7,502,278 (+1.9%); death toll 421,032 (+1.2%); cumulative cured 3,532,690 (+2.3%); active cases 3,548,556 (+1.7%)       
  • -Active cases (vs y’day): US 1,342,568 (-0.9%), Italy 32.9k (+3.6%), Iran 29.0k (+0.4%), Spain 64.5k (-0.4%), Germany 7,642 (+7.0%), France 90.6k (-0.2%), UK 248.4k (-0.3%), Japan 1,051 (+4.4%), S Korea 1,016 (-0.1%); Russia 236.6k (+1.0%)
  • Times: a German study has shown the mandatory use of facemask slows growth of new cases of C-19 by 40%
  • -Houston Area: getting close to reimposing stay at home order & preparing plans to reopen a C-19 hospital
  • -FT: C-19 outbreak continues to spread both south & west ; States on Thurs reported >22k new cases which is similar to nationwide totals from a mth ago but they reflect a sig jump in in Arizona, Alabama Texas & California while NY & N Jersey have seen their cases sharply lower

Market news:

  • EZ 5y5y inflation swap down 9 bps from Tuesday highs
  • UK GDP dropped a record 20.4% in April Calls for More stimulus obviously growing louder
  • EZ industrial output dropped a record 17.1% in April
  • Per Bloomberg US companies may  be able to Claim a slew of Tax credits in 2020 under a new proposal from Senate fiancé committee
  • -JiJi: BOJ to expand corporate support programme to over Y100t
  • ING Economics: U.S.: “Hints of a V, but don’t get carried away”… In a research note, ING Economics says it has revised up its near-term economic assessment “on the back of some very encouraging data in several key parts of the economy, but social distancing, consumer caution, domestic tensions and the threat of a return of the virus means nothing can be taken for granted.(pro farmer)

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