Morning 7-22

  Major news overnight…..@StateDept: US orders the closure of China’s Consulate in Houston to “protect American intellectual property” & “private information.” US accuses Beijing of interfering in politics, stealing intellectual property, coercing biz leaders & threatening families of Chinese Americans…….A bit of Risk off when news hit wires  we know China will retaliate  per pro farmer  “The latest U.S. move marked “a political provocation unilaterally launched by the U.S.,” Chinese Foreign Ministry spokesman Wang Wenbin said today at a routine briefing in Beijing. “China urges the U.S. to immediately rescind its erroneous decision, otherwise China will undertake legitimate and necessary responses.”

The continuing story of the Weaker dollar is driving flows, DXY below 95 handle and has 94.65 the March lows on the radar. Real rates aa sub story to weaker dollar continue to drop thus putting a bid into hard asset. Silver ~+17.5% this week, Platinum ~10%, Gold up a modest 3.3%…Aussie Dollar +~3% from Mondays lows   one of the Commodity currency benefitting from Weaker dollar and run up in metals

Excitement surrounding the EU stimulus deal continues for a second day Euro testing 1.16 handle +1.6% from Mondays lows, European Stocks will tell us when the Euro is to high to impact Exports currently not a problem. Italian yields Continue to move lower and the spread to bunds tighter…..treasury yields lower to sideways  as they have been for a weeks Spoos 20 handles off lows, Nasdaq 100 handles, Russel trading a bit lower  had your chance to buy Spoos on dip overnight. Republicans struggling to speak with one voice regarding new stimulus deal early days but monitor situation

Early results from second-quarter earnings season have been coming in better than feared… Analysts’ consensus going in was for S&P 500 earnings per share to tumble by 44% from a year ago, on a 12% drop in revenues. The actual results so far, according to data from FactSet, show just over 80% of S&P 500 companies that have already reported second-quarter results have surpassed Wall Street’s estimates.-pro farmer

  • US Strikes $2 Billion Deal to Buy COVID-19 Vaccine from Pfizer
  • RTRS: China central bank to pause easing as economy recovers, wary of over-stimulus: sources
  • Trump, GOP Struggle to Find Unity on New Stimulus – BBG   watch this
  • U.S. records 1,000 deaths in one day from COVID-19, California passes 400,000 cases – Reuters
  • S&P Global: COVID recovery fund a ‘breakthrough’ for EU sovereign creditworthiness … RTRS European Union’s 750 billion euro (683.31 billion pounds) post-pandemic recovery fund is a positive for the bloc’s sovereign ratings
  • Trump says pandemic likely to worsen before improving… President Donald Trump said Tuesday the coronavirus pandemic would probably worsen before improving but said getting a vaccine is a “top priority” and “we’re going to get it taken care of.”
  • MSFT and TESLA earnings after close
  • Snap -7% due to poor earnings
  • API reported a build in oil stocks 7 million barrels

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