Today toe all of you extorting there news flow. An to an extraordinary news flow. An election in five days. Markets, there they are, and reversal. You see it in the futures of the s p 500. Jonathan we are down five on the s p 500, 0. 2 . The bounce in europe was never convincing, and the bounce in the United States has not held up. Eurodollar clinging to a 1. 17 handle. The ecb is getting what it once for all the wrong reasons. A weaker euro for a fourth straight session off the back of more restrictions in germany and france in the past day. A 1. 16 handle, that will be symbolic. Of course, distracted by the death in nice. Lisa abramowicz, what was so clear yesterday was that the bond market did not move, and that it did. Lisa to me, this is the story of the week. Weve got very hardcore risk off in response to very real threats of a widening pandemic. Treasuries are not the hedge they used to be. Yields rose yesterday, which is exactly the opposite of what they traditionally do when s
Bit of again have a cyclical or rotation reopening rotation happening with the financials, materials, real estate to the upside. On the bottom we have tack. Financials are not being helped today. Bonds selloff. Intel,ight down by putting up a disappointing, lackluster guidance. The first down week for stocks in four weeks. David as we have talked about although sponsor comeback a little bit they are still at or above their range. The dollar is still down a bit. Abigail you are right about that. With bonds it is interesting. If you put the dollar in there, it is climbing as rates go higher. That has not been happening. What makes the bond rate so interesting is it has pressured stocks. Last three over the months has been basically stuck in this range. This decline turns into something bigger, we could have the s p 500 go back towards the september low. My sense would be what you are talking about. The opposite happening for yield and pressuring stocks down. We saw that back in june. Tha
Equity futures lower on the ftse. The s p 500 went down. Bid into the bond market. Into the bond market we go, negative almost 60 basis points on a 10 year. Its like a throwback to our days together five years ago. There is some weight to this. Good morning. Annmarie certainly, it is. Were so excited to have you back. An absolute gladbac bloodbath, nymex dropping below 39 as the resurgence of cases in europe not going to bode well on the demand side. The supplyside worried about libyan oil barrels. Softer. A bit this is the prospect of fresh stimulus. That helped treasury yields rise. Jonathan thank you. Lets get the first word news this morning. We can do that with laura wright. Laura china is laying out a new plan for Economic Growth this week in beijing. President xi jinping is holding a meeting to decide on the next fiveyear plan. Its expected to focus on technological innovation, economic selfreliance, and the environment. But the event is closed to the press. Key decisions wont b
Come on, jon. Theent an hour reviewing dynamics. Theres been a real deterioration. Mike Allen Publishing moments ago for axios, and he melds the two stories together. Hes focused on wisconsin and montana being those swing states with huge pandemic issues. Jonathan and yet, wheres biden and harris going to be this week . Biden in georgia, harris in texas. Who would have thought that was to the election, those are the two places they would be. Tom georgia has really been front and center. Londonitical analyst in Francine Lacqua mentions she is focused on george as well. Jonathan new restrictions across the continent, and what are we not talking about this morning . We are not talking about stimulus conversations. This market adjusting lower. Lisa perhaps you can blame the fact that we havent gotten a fiscal deal. Week, wasch a huge andt days to the election, the data does stay pretty soft. 10 00 a. M. , we are getting u. S. Newhome sales. Expect deceleration in the full number based not
Chinas leaders meet to draft their next fiveyear economic plan and the virus recovery. We are live in beijing. Adi terry warning warning from the World Health Organization. We are in a dangerous place. We are not going to control the virus. Are we perfectly positioned for risk . I take you to the changing risk in the polls. And thethe bond market polls. A blue sweep from a 62 probability to 51 probability in a month. It is a curve. Overextended to the upside. These are the markets this morning with the risk from the white house. We are not going to control the pandemic. There are lockdowns in spain. Are you pricing equity market risk appropriately . Markets are trading what they see, not on what they hope. Goldman sachs say you will have to reach for risk. Stocks could outperform the credit markets into 2021. I take you into the response mechanism on the australian dollar, a high beta trade. There, the rba could strike next week with lower rates. You just shredded the cost of hedging a