US stocks rallied and the S&P500 close with a gain of +0.8% with the rally pointing at an early morning newswire that China and the US were planning to renew talking about trade... “We’re talking to China, they very much want to talk,” Trump tweeted yesterday enabling CNY to recoup 0.4% and Chinese stocks to stop and reverse a further steep decline from the early hours on Thursday. The Stoxx Europe 600 also rose for the first time in seven days. TRY gained 3% and managed to keep them as international support lined up for Turkey. Turkish President Erdogan spoke with French President Macron, a day after talks with German Chancellor Angela Merkel. The dollar index closed marginally lower. EM currencies breathed a sigh of relief generally as a result and the USD ebbed back a little against DM and EM with only ZAR still plumbed by weakness in the metal complex and talks that a list has been circulated about farms susceptible to be expropriated. ZAR dropped 2% (fading an earlier rally of 1.5%) while RUB rallied and stayed firm throughout the day, gaining +1.5%. MXN also posted a modest recovery. 10Y US Treasuries were unchanged at 2.87% were unchanged and HY spreads recouped their 5bps widening from the previous day. Gold was unchanged yesterday but gold shares were further pummelled, shedding 3%.
The US administration said more sanctions would be imposed against Turkey if the US pastor is not freed. Nvidia missed expectations (as it reported a sharp decline is graphics cards sale used for mining cryptocurrencies) with the stock falling 4% overnight, possibly heralding a further consolidation in an already weak chip sector.
Much of yesterday’s enthusiasm is fading as a result this morning with the dollar generally heavier except against EM. Tesla is trading sharply lower (-6%) as E. Musk troubles with the SEC intensify and Gold is catching a bid... for a change.
——- This is a delayed and abbreviated version of our premium subscription-based report published ahead of the US and European session every day. For a timely and up to date detailed global markets commentary, a comprehensive suite of market reports with global tactical model portfolios and daily insight, join a free trial to our premium research or contact us. Discounts may apply for both private and professional subscription plans. Important Disclaimer © Copyright by BentinPartner llc. This blog is not intended as a recommendation, an offer or solicitation for the purchase or sale of any security or underlying asset referenced herein or investment advice. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, investment horizon and particular needs. This blog does not include information tailored to any particular investor. It has been prepared without any regard to the specific investment objectives, financial situation or particular needs of any person who receives this report. Accordingly, the opinions discussed in this blog may not be suitable for all investors. You should not consider any of the content in this report as legal, tax or financial advice. The data and analysis contained herein are provided "as is" and without warranty of any kind. BentinPartner llc, its employees, or any third party shall not have any liability for any loss sustained by anyone who has relied on the information contained in any publication published by BentinPartner llc. The content and views expressed in this report represents the opinions of Marc Bentin and should not be construed as guarantee of performance with respect to any referenced sector. We remind you that past performance is not necessarily indicative of future results. Although BentinPartner llc believes the information and content included in this report have been obtained from sources considered reliable, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. This blog is also not intended to be a complete statement or summary of the industries, markets or developments referred to in the blog. #DollarIndex @federalreserve #ForexMarket #ForexNews #USD #USTreasuries #TradeWars #Markets