Crude up 2.19%. Brent up 2.29% The price of crude and brent crude are up over 2% in trading today: Higher stocks, tension in Syria (and Russia involvement) are helping to contribute to the run higher.
Major indices are higher, but not by much. The European stocks are off to a positive start this week but modest gains are recorded. IN the 10 year not sector today:
White House on Syria There are/were fears that the US could launch some kind of heavy assault on Syria today after Trump’s tweet but that’s not what Sarah Sanders says.
Nasdaq up 1.75% Do we give Larry Kudlow credit again? Maybe… He spoke on CNBC with the All the major indices are at/near highs for the day. NAFTA and China fears are lower, but we’ve been down this road before (last week). But technically, the S&P is moving away from it’s 200 day MA below…
USD/JPY fades as stock market ebbs USD/JPY is at the worst levels of the day and has matched Friday’s low. The enthusiasm in stock markets didn’t filter over into USD/JPY earlier and now with the S&P 500 about 16 points off the highs, it’s extended to the downside.
Highlights of the BOC business outlook survey and senior loan officer survey – Capacity pressure indicator moderated but firms see capacity pressures intensifying over the coming 12 months
CBO deficit numbers – Says budget deficits will “grow substantially” over the next few years, then stabilize in 2023 – Sees $1 trillion deficit in 2020, two years earlier than previously The changes come as a result of the tax cut. What surprises me is the forecast for lower inflation despite higher growth.
Here are the trades of the week The euro and commodity currencies are the flavours of the week. Barclays is off to a tough start with its trade of the week. They suggested selling EUR/USD at 1.2265 with a target of 1.1948 and a stop at 1.2444. They’re about 60 pips underwater at the moment…
Congressional budget office projections released
Bridgewater’s Ray Dalio weighs in on geopolitical risk Ray Dalio had believed that trade tensions would subside but not now thinks a “scarier agenda” is in play with all kinds of wars possible.