Morning 2-2

  Buy Stocks!

  • The vaccination program in the U.S. has hit a significant milestone with the number of people receiving at least one dose of a Covid-19 shot now larger than the total number of infections reported in the country. The deputy director of the Center for Disease Control and Prevention signaled the outbreak may have peaked, saying: “If this pandemic were a stock, we might be wanting to sell. BBG
  • More than 100 million coronavirus vaccine doses have now been given worldwide. Yesterday Pfizer upped the target vaccine supply from 1.3 bn to 2.0 bn this year. BioNTech/Pfizer will deliver 75 million of additional doses in the second quarter of the year to Europeans, and up to 600 million in total in 2021-BBg.
  • The Euro Area economy shrank 0.7 percent on quarter in the last three months of 2020, slightly less than forecasts of a 1 percent plunge Trading Economics.
  • The Reserve Bank of Australia left its cash rate unchanged at a record low of 0.1% during its February meeting, as widely expected. Policymakers said they would extend their bond-buying program by another A$100 billion (A surprise) and pledged to maintain rates on hold until at least 2024- Trading Economics.
  • Yesterdays meeting between 10 Senate republicans and Biden regarding Stimulus was described by Senator Collins as dubbed “very productive.” 
  • European inflation small beat in an Environment where inflation is below trend but Rising it is good for stocks (ITC markets)
  • -FRA Jan CPI: m/m 0.2% vs -0.1% cons; y/y 0.6% vs 0.4% cons
  • -FRA Jan HICP: m/m 0.3% vs 0.0% cons; y/y 0.8% vs 0.4% cons
  • -ITA Q4 GDP: q/q -2.0% vs -2.2% cons; y/y -6.6% vs -6.7% cons
  • -EZ Q4 GDP: q/q -0.7% vs -1.0% cons; y/y -5.1% vs -5.4% cons

In China the PBOC looks like it’s taking its foot off the brake. The interbank rates dropped Monday after the PBOC injected cash, while official data has showed the manufacturing and services sectors expanded at a slower pace in Jan amid COVID19 resurgence in parts of China – Mizuho.

A bit of negative news both Germany and japan to extend Strict lockdown measures.

Markets:

 Silver the thrill is gone in a hurry   margins raised by CME and Clearing firms.  Futures down-6% $2.30 off yesterday’s Highs, Gold -1%, Platinum -2.6%   Dollar index tight range but trading above last bit of resistance No stops being triggered yet, but I am on the lookout.

 Spoos and Nasdaq +.8% Stoxx 50 +1.2% Dax +1% NKy -.3% CSi 300 +1,2%, Taiwan +2.27%, iron Ore -5% pulling base metals lower Copper -.6% Crude and brent 1 year highs due to OPEC comments a slight negative for the Long end Bonds, US  10 year yields higher for 4th consecutive day 5-30s spread highest in 2 years or so reflation narrative back on. Winter not over new polar vortex over next 10 days has caused a short squueze in the H-J spread  A contract high in Volume yesterday 0f 53 k for the spread

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