- OPEC+ leaning to another modest output increase at Sunday's meeting
- Dallas Fed October manufacturing general business activity -5.0 vs -8.7 prior
- Mexico says US extending trade deadline for several weeks
- Amazon may cut 30,000 corporate jobs, starting Tuesday
- Category 5 hurricane expected to hit Jamaica tomorrow
- Zelensky says Russian oil refineries will pay an even-higher price for war
- US treasury auctions $70B of 5 year at a high yield of 3.625%
- U.S. Treasury sells $69 billion of 2-year notes at a high yield of 3.504%
Markets:
- S&P 500 up 1.2%
- Nasdaq up 1.9%
- WTI crude oil down 15-cents to $61.35
- US 10-year yields down 1 bps to 3.98%
- Gold down $120 to $3990
Gold fell below $4000 for the first time since October 12 as the profit taking took it down to the 38.2% retracement of the rally since August. In contrast, the Nasdaq broke out for the second day as the many rumors of a US-China trade deal were confirmed.
It was one-way traffic in both trades with US stocks finishing the day at the highs and gold on track to finish below $4000. Over in FX it was much quieter with changes limited to a quarter-cent aside from a small bid in AUD on the better China trade developments. Even the Canadian dollar managed to eek out a small gain despite Trump's fresh tariff threat.
I spoke to Reuters about the move:
"I just think the tariff threat has lost its teeth and it couldn't be any more clear than it was in the Canadian dollar trade today, as the market has collectively shrugged off the threat almost completely," said Adam Button, chief currency analyst at investingLive.
It's a busy week for corporate earnings and there is minimal talk of the end of the US government shutdown so there won't be much economic data.
