Morning 11-19

Vaccine positive sentiment continues to Fade as a short-lived rally in risk due to positive AstraZeneca comments overnight., Now Bonds Up Dollar up, Stocks, Gold, oil, Copper lower. Nat gas traders believe winter is not coming, NG -4.8%. Front month 6-week low H-J spread new contract lows trading positive 57, no fear of cold weather.

 European stocks a bit worse than US, Stoxx 50 -.7% Spoos -.18%   Gold doesn’t like the QE themed trade it appears more Fiscal stimulus trade yes Gold responds. Covid worries /Shutdown worries demand destruction front and center again from IFR news” … New York City announced that it will cease in-class teaching as well as slashing subway and bus services by 40%. Many major cities are cutting way back on commuter services as lockdowns increase. Covid cases are also exploding in Asia. Minnesota hospitals are near capacity. Tokyo ramped up its alert to the highest level following a record in daily cases. South Korea said it will increase the social distancing level to 2 from the current 1.5 if Covid cases continue to exceed 200 per week. South Australia announced a full six-day lockdown.  Member of the Who “”Europe is once again the epicenter of the pandemic, together with the United States. There is light at the end of the tunnel but it will be six tough months,” Kluge told a news conference Reuters…..Short term trend is lower for Yields …..Any hopes for increased Bond Volatility deceases with every down tick in Futures. UBS out with a recommendation cutting its outlook to neutral for commodities and says to take profits due to Virus risks BBG   Silver -2%

Soybeans trading lower today something wrong with the matrix. Corn also lower, option expiration for Dec grains tomorrow Cattle on feed report tomorrow as well. All eyes on weekly Export data from USDA 

News

  • Turkish Central bank raised rates 475 Bps today 
  • Trump lawyers to hold new conference at 11:00 at RNC headquarters
  • Jobless claims A bit worse philly Fed better
  • Weekly Soy and Corn Exports better than expected

Flows into Gold ETF’s continue to drop, some 52 tons since last Monday All Gold funds has seen flows drop 8-9 trading days

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