Moderna +17% premarket as their Vaccine shows promise in early trials -markets believe any Positive vaccine news takes it one step closer to the cure that fixes all. AstraZeneca also reporting positive vaccine news, Early days though
Spot Dollar Below trendline looking now at 95.71 Another leg higher in Risk if broke
In turn Euro higher above 1.1400 looking at the March highs at 1.1495. ECB meeting tomorrow unlikely to announce any new measures
More bullish news:
- Apple wins major tax battle against the EU… The bloc’s second-highest court today sided with the U.S. company over a €13 billion ($14.8 billion) tax bill that EU antitrust officials had said the company owed to Ireland.
- The people Bank of China (PBoC) injected a CNY 400 billion (USD 57.09 billion) into the financial system via one-year medium-term facility (MLF) at 2.95 percent on July 15th, 2020
- Goldman Earnings: revenue from trading stocks and Bonds surged 93% y/y Fixed income trading best in 9 years Equity trading best in 11 years Stock +6% helping dow +550 Earnings $6.26 vs $3.95 expected
- United health Care reported EPS $7.12 vs $5.25
- Merkel hinted at a Compromise in Crunch European Union talks on Recovery plans (BBG) EU leaders meet this weekend
- mortgage applications +5.2% last week
BOJ: leaves policy & fwd guidance on rates unch , expects both S/T & L/T rates to remain at current or lower levels; rates left at -0.1%, 10 JGB yield target at zero; will take additional easing steps w/out hesitation if needed (ITC markets)
The UK’s decision to ban #Huawei means huge economic loss for it. It is highly doubtful that other European countries will make the same decision (Globaltimes)
Five-year real yields (USGGT05Y Index) fell to -1% for the first time since May 2013. This is a function of rising inflation expectations as measured by US five-year breakevens (USGGBE05 Index) versus stable/falling US five-year nominal rates. ◘ A record 77% of S&P 500 stocks pay higher dividends than Treasuries – Bloomberg.
◘ There’s been record corporate debt and equity issuance in Q2. Virtual meetings are speeding up issuance. The Fed is providing a backstop for credit. Companies are preparing for an uncertain future. JPMorgan, Citigroup & Wells Fargo set aside almost $28 billion for bad loans in the second quarter, the most since 2008-Mizuho
Stoxx +2.3%, Dax+1.9%, Mib +2.1% Dow +2%, Spoos +1.3% and nas +.6%. Treasuries and Bunds a bit lower not fully on board yet with the risk On. vaccine hope trade. Gold sideways, Copper steady and silver once again trying to break $20 trading $19.82
Second tier ECO data today, OPEC + meeting today expectations are for some amount of Production cuts, Watch for Fed speak @11:00 Harker, bank of Canada rate decision at 9:00, China GDP tonight at9:00