Is a warning to the entire industry. More planes into a collapsed market. Shery lets get started with a quick check of how markets ended in the u. S. U. S. Futures right now seeing some downside, down 2 10 of 1 at the moment. This after u. S. Stocks closed at a six week high. We have financials leading the gains. Surprisingly good earnings reports coming from Deutsche Bank which is helping sentiment. We have more positive sentiment and perhaps some expectation there could be more stimulus aasures given that we have trio of Major Central Bank decisions this week. 25 s p 500 up more than from its march lows. When it comes to the nasdaq, also gaining ground, about more than 1 for the regular session. Take a look at what oil is doing because we are seeing some upside for wti which is gaining about 1 . Backafter oil plunged below 12 a barrel. We are now seeing it just nearing 32 a barrel. We did get u. S. Drilling cuts but at the same time come we have the biggest oil etf in the u. S. , say
Day. Saudi arabia already scaling back production ahead of the may 1 deadline. Lets take a look at how markets are setting up. New zealand is closed for the anzac day public holiday. No trading in kiwi stocks. Seeing optimistic. Japanese future going higher going into the bank of japan decision where bond buying could be on the table. Watching the japanese yen as it passes through rumors and conflicting reports on the health of the north Korean Leader, watching for a risk asset. Side in asiane trading monday, reflecting the pickup in u. S. Trading friday although we are seeing u. S. Futures trending lower in the morning asia session. Saudi arabia has already started curving output ahead of the may 1 starting date for the opecplus output and production curve agreement. Four days of gains when it comes to oil prices. Shery global confirmed cases having an impact on the markets, approaching 3 million according to data elected by bloomberg and Johns Hopkins university. There are signs new
Medical team to north korea. We are pulling together the latest claims. Shery lets get you started with how markets are trading. U. S. Futures are extending gains we saw on friday. Last week we saw Downside Pressure across the markets. The s p 500 was led higher by consumer stocks. President trump signing the 484 billion spending package including money for small businesses. Congress has doled out 3 trillion in that package. Upsideinue to see the with u. S. Futures. Joining the intel ranks of those companies that are now opting to withdraw fullyear guidance. There seeing oil falling as session begins in asia, after the wti hovered around 17 a barrel. And we are going towards the opec output cuts that begin may 1. It is all about the latest headlines on coronavirus cases around the world. They are approaching 3 million according to Data Collected by Johns Hopkins and bloomberg. Has the state saying it death rates have continued to fall and now at the fewest in a month. This as Governor
Ken i think treasuries have run as far as they are going to run at this point. If we see improvement in growth, we are looking for improvement in growth in europe, and the message will be that the market will adjust. Are we going to go dramatically higher . No. But i think we are at the low end. Jonathan it is like chinese water torture, drip, drip, drip. Ok data from the u. S. Chinese data doing ok. That chinese data to close out the week was really terrific compared to what we had 12 months ago. Here we are, yields are up by a basis point. Does that make sense . Ken i would argue it should have moved more, but there is this tremendous damper on the system that is the fed. That is what you are seeing. Greg their version of qe is still supporting with 20 billion euros on one end. It seems like the market consensus is the fed is out for 2020. That leaves you with the 10year at 1. 80. Breakeven is 1. 75. I dont see anything breaking us out of here. Jonathan we have to talk about the trea
That is putting the fed in a bit of a bind. It creates the risk of a policy mistake. The fed will not make a policy mistake if everything is fine. If the data does not get worse. Which people are forecasting. You could have a second half where the economy is bouncing back. The second half we should see that fade. The fed is actually going to surprise to the downside on the Balance Sheet. They should not continue that Balance Sheet expansion. Is the market going to see that as the end of qe, quantitative tightening . The fed playbook is to cut big and fast and signal qe if there is weakness. Thats a big risk for the market. Jonathan joining me around the table is greg staples, lisa hornby, and ken monahan. Lets talk about it, ken. Your thoughts on that, is it or isnt it qe . Ken i know mr. Kashkari is trying to throw cold water on the idea that it is not, but even being in minneapolis, he doesnt have enough water to throw on it to convince the market it is not. I think the market call i