Hong Kong for the first time since 1993 decided to increase the tax on financial transactions, stock trades. Hang Seng -2.99%, CSI 300 in china -2.55% NKY –1.6% the reason is to pay for all of the Lost revenue Public welfare from COVID-19 response. European stocks in the green 13-20 Stoxx 600 sectors higher led by basic resource and travel and leisure and industrial goods. Spoos and Nasdaq higher yesterday’s highs in Spoos Nas Russ all should be monitored as a momentum indicator a break above could lead to higher gains.
US Yields 30s and 10s touching 1-year highs not good for stocks but okay for the dollar as it is creeping higher a bit, Euro and JPY down on the day GBP had some type of Fat finger trade overnight Spiking 100 ticks generating an outside normal range, GBP little changed as I type. Higher Long end yields and a firm dollar not good combination for precious metals as All are trading a bit heavy this morning. This combination not having a negative impact on oil as prices are firm Brent 100 call options for December seeing a 10-fold jump in open interest more FYI than market moving news, A whisper of $100 Oil Says BBG
More worries about South America Weather and possibility of Brazilian farmers not delivering Soybeans that were sold at much lower prices (BBG) pushing up Soy prices worries about drought in US pushing up Wheat, but remember it is a weed and can grow anywhere.
Inflation warnings everywhere per WSj Supermarkets threatening higher prices to pay for hazard pay, Visa and Mastercard threatening to raise swipe fees and hiccups in the Supply chains ahh.
Powell at 9:00 opening statement will be unchanged Q&A where some excitement might arrive.