, guy . S going on Europe Vincent we are seeing stocks guy we are seeing stocks turning around. Makes you wonder how bad they whisper number must have been for everybody to react positively to a 3. 2 number. Stoxx 600 in positive territory. Travel stocks leading the move. The big move in many ways has come from the ecb, announcing , theetails of its pepp pandemic emergency purchase program, which is it is using to buy bonds. It is basically tearing up all of the old rules that use to apply to ecb emergency purchases. As a result, we are seeing a big move on the italian 10 year, and massive move on the spanish tenure. Downw the bank of england today, and some really interesting comments out of the bank of england. Brent crude a little softer today, 27. 13. What a week it has been for stocks. There does seem to be much more positive sentiment towards the equity market. The question is how long can it last. Guy exactly. Vonnie exactly. Those jobless claims did serve four times the previou
Exception of the bond market. We are down at session lows on the stoxx 600. Sector certainly taking it hard today, as we see this drop, a very sharp drop we are getting in the crude market at the moment. Theres a top line running on the bloomberg of the sharp drawdown we are seeing. In terms of the bond market, and some ways, this is where the real action is. The expectation is we will see significant supply, as a result of this we have a big move in bunds and btps. Btps pretty under pressure. It looks like the ecb via the bank of italy was in the market earlier on. When it comes to the markets, dollars strong. We are now trading at cable rates we havent seen since the mid80s. We went through 1. 20. Now we are trading with a 1. 18 handle on the cable rate. Alix i love that you brought up btps. At one point they were up by 58 basis points. The Trump Administration now promising a 1. 2 trillion dollar stimulus package, including direct payments of 1000 or more to americans. President tru
Petro currencies not doing so well. Guy . N europe, lets look yeah, at what is happening in europe youat least the dollar is down. Dollar is not continuing to rocket fire as it has been the last few days. We are waiting, as you say, to find out what is happening on capitol hill. We think of what will happen around noon eastern. The vote will happen around in eastern. To session highs before fading again. We have a bit on the euro today, that is good news to the pound has been pummeled. Germany out with a big stimulus package earlier on today. It is going to be issuing more debt. That is the reaction in the bond market. We got a bid on the german bund today, which is good news. Equities and bonds are moving in different directions. They are acting as a bit of a counterweight to each other, which wasnt happening at some point last week. That is the good takeaway today. Vonnie exactly. Purchase of agency, Mortgage Backed securities, it is a new vehicle for this to happen from the Federal
The focus has been on what is happening in washington. It was fascinating to see the fade on equities today. European equities are off session lows. We faded pretty precipitously earlier on. The pound is also off its earlier session highs and has certainly faded the early move. A similar story in brent as well. The initial burst of enthusiasm around that deal starting to ease back a little bit. The real question, this is just dealing with the here and now. Are we going to need further help from washington and other governments around the world to get the bounceback that may some people are looking for . Vonnie just getting a headline now that german lawmakers have approved a 156 billion euro stimulus. A few things happening in europe as well. Back to washington, the white house and senators have finally come together in an effort to bolster the economy. Senate Majority Leader Mitch Mcconnell spoke earlier on the senate floor. Sen. Mcconnell at last, we have a deal. After days of intens
They are maintaining well above it. 30 years were at 69 basis points last week. 137. Hey are at we are seeing some recovery perhaps in the treasury market, and that is good news. Alix but a lot of criticism has been the fact they didnt address the commercial papers market, exactly where the help is needed the most. What are the steps they can take to address that . Michael they could set up a special Lending Facility to buy directly. That may be coming. Jay powell was asked if there ree actions th coming, and he said we are not ready to announce that. Are there no swap lines for the pboc . Theres a story floating around that once the feds its arthur dollars why have got swap lines with all the Central Banks, but not the chinese . Michael i would suspect probably because the chinese yuan is pegged to the u. S. Dollar. Dont know how much of a dollar problem they have. Theres always a rumor that the chinese are going to sell treasuries that never really comes true. Where we do see problem