Morning 10-28

 Virus /lockdown Worries driving European Stocks Lower and taking Risk with it.

  • Merkel proposing to shut all bars and restaurants for Month of November
  • Macron also hinting at another nationwide light Lockdown
  • UK Johnson Under pressure from Scientific Advisors to for new lockdown measures-BBC
  • Poland Record increase in cases and deaths
  • Belgian Hospital admissions top first wave peak -BBG
  • Czech Republic new record number of daily cases
  • Mainland china most new cases in a month-Mizuho
  • Odds of Republican to hold senate touched 1-month highs=Less chance of a large stimulus package
  • Junk Bond yields highest in 3 weeks (Mizuho) $900 Million withdrawn from HYG yesterday=Canary in the coal mine Junk bonds sell off Stocks normally not to far behind

    Dollar +.5%, Dax, Stoxx, Cac and Mib all down>3% Stoxx 50 Worst levels since Mid-May Bund yields lowest since Early March. Spoos not as bad -1.8%, Nasdaq -1.3% Microsoft earnings beat but forward guidance disappointed Stock -2% preopen. Stronger dollar=weaker Gold -1.3%, Silver -2.8% Platinum -2% Copper -1% CL -4.6% Brent -4% demand destruction part two, the last thing oil bulls want to hear is more lockdown thus less traveling =less demand.Weekly API data bearish for oil as well. Not pretty. Corn -2.3% Soybeans -1.7% all commodities on the offer. Earnings continue to be released by markets attention is elsewhere for the time being. EURJPY -.65% yesterday -.52%, EURUSD -.6% no one likes Euro today

 Hurricane Zeta surprisingly registered a cat 2 now from pro Farmer “Zeta is expected to hit the southeast coast of Louisiana this evening as a Category 2 hurricane, producing a notable storm surge, heavy rain and strong wind as it moves inland. Gulf of Mexico operators have shut roughly half of all oil and gas production in the basin ahead of the storm. “The system will move into southeastern Mississippi this evening and will then race across Alabama to Virginia Thursday and be back over ocean water off the Middle Atlantic U.S. Coast by Friday morning,” reports World Weather Inc. The weather watcher says the storm’s fast movement should limit its impact, though heavy rain is expected from “southeastern Louisiana through southeastern Mississippi and across most of Alabama to the western Carolinas and a part of Virginia.”

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