Morning 6-15

Risk Off theme

 Worries  about Second wave of Virus in Both China, As a spike in New  cases coming from The City’s largest wholesale market for fresh produce ,caused parts of the city to be locked down and U.S. as cases in numerous states continue to trend higher . Florida infections rose more than the one-week average for fifth consecutive day. Also, Chinese retail sales Missed expectations thus providing a bit more Fuel for the bears. Late last week World bank said it is likely that 90% of World economies will be in recession this year the highest total since late 19th century (Rabo bank)

 Markets:

NKY Closed lower by 3.4% cases there are creeping higher as well, BOJ meeting today and Tomorrow unlikely to announce anything new, but maybe Investors take a few chips of table before meeting. Spoos Still down 2% but are 40 handles off lows, All Equity Futures are off worse levels of morning. Just released Empire MFG much better than expected some 4 standard deviations better. Surprisingly over night Dollar index moves little it has a range of 36 big ticks in the Spot??  That is telling us something. Tight range in bunds as well overnight Spoos and Stocks quite active but it Seems Fixed income doesn’t care too much  a s ranges are not what I would expect with The big drop pin Equities. Gold -1.4 silver -1.9 palladium -1% copper -2% No place to hide except bonds

Weekly outlook pro Farmer:

The week ahead… The Senate is in session and will consider Trump Administration judicial nominations; the House is in pro forma session — no House floor action, although committee work continues virtually. Fed Chairman Jerome Powell will deliver his semi-annual economic testimony to Congress on Tuesday and Wednesday. He may provide more clarity on the Fed’s bond buying and other policy moves. Traders will monitor to see if his comments expand on his sober assessment of the economy last week. COVID-19 news is still paramount as the impact of re-openings challenge health concerns and businesses getting ready. Hospitalizations have been rising enough in states like Texas, Arkansas, Alabama, Utah and Arizona to create concern. Others temper those concerns by noting more testing is being done. U.S. trade policy will be in focus with two virtual hearing appearances by U.S. Trade Representative Bob Lighthizer. He will likely be asked for updates on implementations of the U.S.-Mexico-Canada trade agreement and the Phase 1 trade accord with China. USDA’s monthly Cattle on Feed Report will be released Friday.

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