Morning 2-22

Lots of Red on Quote board as Higher rates weighing a bit on Stocks.

 A bit of news…

 The Shanghai Composite fell 53.72 points or 1.45% to 3642.44 on Monday as China’s bank regulator tightened requirements on the internet loan business of commercial banks. Banks reportedly must contribute funds to issue internet loans with a partner, and the proportion of capital from the partner in a loan should not be less than 30%. Meantime concerns about bubble risk in domestic markets emerged after reports that China will study the feasibility of allowing individuals to invest in securities and insurance products abroad, with the amount will be within an annual quota of $50,000 per person-Trading economics.

 Can’t stop Copper … traded above 9K on LME for first time in 10 years, comex traded in a 16-handle range overnight! Sitting right n the middle in range as I type +3 handles +1% now I went n looked at cftc data and Speculators are not net short, End users on the other hand are.  Nickel 6.5-year highs and tin Continues to squeeze higher traded to 10-year highs earlier this morning. Both Tin and copper have doubled over the last 12 months

 Stocks in china heavy CSi 300 -3.1% as the largest company in China Kweichow Moutai -6.99% Sector rotation evident as Energy sector +3% while Consumer staples -5.96% tech -2.5%, hang Seng -1% TOPIX +.49% European bourse lower to start week Dax -.6% Stoxx 50 -.7% all but 2 of 20 Stoxx sectors lower on day Travel and Leisure +1.6%

 Nor can you stop rates 10-year +3.6 bps ,7 year +4 ,30s +2.8 long end rates 1-year highs can’t stop the uptrend in yields, but will Powell try as he speaks this week? Australia seeing some heavy selling in her treasury Complex 10-year yields =16 bps,30 years +16 bps !! oomph as markets price in aggressive rate hikes that central bank is not even talking about. Bund yields +.4%, Italy +3.5%, JGBs 10 year +1.3% higher rates and lower stocks worldwide id the theme for today.

 Big range bitcoin over weekend, CME futures 5,000 range down 2K ~5% as I type, Dollar down a bit Aussie higher, grains sideways, Nat Gas heavy, oil higher.

News:

  • Positive vaccine news JnJ  to get review of their of vaccine on Thursday, PFE  vaccine more effective than first thought the Pfizer Inc. and BioNTech SE Covid-19 vaccine appeared to stop the vast majority of recipients becoming infected-BBG ,Biden making some adjustments to PPE land and Biden stimulus plan to get first votes this week. All weighing on bonds
  • In Texas Nat gas production increasing daily but still below pre storm levels, Weather forecast warmer Nat gas -4%
  • Boeing down 3.5% as an Engine fall off one of the plans over the weekend.
  • Powell testifies in front of Congress twice this week.

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