A bit heavy in Stocks they have been trending Lower ever since 8:15 last night Stoxx 50 -1%, Spoos -.6% dax -1.3% 18 of 19 Stoxx 600 sectors down on day. … Chinese stocks holding the line  The Shanghai Composite moved 12.46 points or 0.37% to near 2 ½ year highs of 3345.34 on Tuesday, following a surge of 5.71% in the previous session and gaining for the 6th consecutive trading day(Trading Economics)  CSi 300 +.6%   …Early talk of a bubble  I don’t think anywhere near that yet, per mizuho Margin “debt accounts for about 2% of China’s total market cap, much lower than the peak of 4.5% in 2015”  when the last bubble popped

  Possibly dour warning out of Eurozone weighing on Risk bit Europe’s economy will suffer more than previously estimated this year and take longer to recover because of the coronavirus, according to the European Commission. The ECB may ask banks to withhold dividends for longer – Reuters

 Bonds as usual playing it safe yields a bit lower Bunds on the other hand see yields steady to higher some issues with  the Auction of Austrian paper is being blamed for Weakness. Currency markets quiet  Jpy a touch weaker vs G7 nothing out of the ordinary…NG on a run  Friday +3.7 yesterday +5.5% today +4.6  Oct-Jan Spread +13%, yesterday +11.25% today  somebody worried about heat wave strength is  the front months   Corn -1.3%  Silver and palladium -1%


 Everyone hates congress today as word that many friends and Associates along with a few Chinese companies receive PPP loans.

  • ‘Japan’s household spending drops at record pace as virus hits economy’
  • Brief: Japan’s household spending dropped to 16.2% in May (vs -12.2% forecast)
  • GasBuddy: Gasoline demand down 23% y/y over July 4th holiday weekend
  • Federal Reserve official warns U.S. recovery may be ‘leveling off’
  • The OECD said this morning that unemployment rates in the world’s advanced economies will end the year higher than at any time since the Great Depression, and not return to their pre-pandemic levels until 2022 at the earliest
  • Cattle futures now at a premium to the cash market
  • Chinese pork prices still rising… Chinese pork prices climbed 3% from June 29 to July 3 to 47.37 yuan ($6.73) per kilogram in the 16 provincial-level regions tracked by the country’s ag ministry

Six-week lockdown to be reimpose in Melbourne with spike in new Covid-19 cases. “We have to be realistic about the circumstances that we confront,” Premier of Victoria Daniel Andrews said. Residents must not leave their homes except for work, exercise or essential medical care. (pro farmer)

  RBA: leaves cash rate at 0.25% as expected , maintains 3 y govt yield target at -0.25%; won’t increase cash rate until progress made on employment/ infla targets, will maintain accommodative stance as long as needed; fiscal / mon support likely needed for some time , will step up bond purchases if required;

White House agrees with Senate Republicans that price tag for  
next stimulus should be at or below $1t: Politico              
Admin. likely to support another round of stimulus check:     

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