Morning 9-2

  Risk on ,Again

Stoxx 50 and Dax +2.4%, Mib + 2% All 19 stoxx 600 Sectors higher led by Chemicals and tech. Nasdaq +.9%,Spoos +.6% Things looking a bit better Globally,Soild  Manufacturing PMI data in US and China  the weaker EZ CPI data is likely to bring forward another round of Stimulus a bit sooner than Anticipated so all is good in the eyes of “Risk”. The dollar not playing along to that  narrative today as it trades higher for second day, Yesterday  ECB Executive board member pushing back a bit on the Strength of Euro with a touch of verbal intervention euro trading  1.1845 after breeching the 1.20 handle yesterday.  European yields Moving lower due to the Expectations of more Bond buying sooner rather than later BTPs yield -7bps, Germany-4, Spain -6 bps Treasury yields a touch lower

 Just released ADP report caused a bigger reaction that I would have thought, the number missed expectations badly and Dollar sold off and Bonds rallied. I thought Reaction to Employment metrics are dead based on New fed mandate, but I guess not. If people are not working, then Spending takes a hit, obviously

 Via Mizuho The US Election is priced as worst event risk in VIX futures history, says Bloomberg. Trading of VIX futures started in 2004. “In the history of the VIX futures contracts, we’ve never had an event risk command this sort of premium into forward-dated vol at a specific tenor,” Bloomberg macro strategist Cameron Crise. “That obviously suggests that markets anticipate some pretty incredible fireworks.”

 …More from BBG

A few Things

  • All six primary metals on LME are now up on year as Aluminum finally turns positive (BBG)
  • Congress still far apart on New stimulus
  • Australia fell into recession for the first time since 1991- BBG
  • Aus. Q2 GDP: -7% q/q vs -6% cons; -6.3% y/y vs -5.3% cons
  • -Japan’s LDP: Election for new Japanese PM will take place on 14 Sep
  • -BOJ’s Wakatabe: Won’t hesitate to take additional easing steps if needed -ITC markets
  • Dr Fauci (NIID): a vaccine could be available earlier than expected if clinical trials are overwhelmingly
  • ICYMI: NIH panel said there’s insufficient data to show if plasma is a safe & effective treatment for C-19

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