British Prime Minister who will demand an early election for the second time in a week. We either go forward with our plan to get a deal or somebody else should see if they can get us in beyond october he tells cnbc that bond market holders need no longer be called saying investors need to take the asset class. You will lose we had a major player in the bond market that is involved for noncommercial reasons. Happy friday. First lets recap the price action over the last 24 hours. Very positive session for u. S. Equities and actually u. S. Indices are about 2. 5 from record highs yet again despite volatility those indices continue to make a come back and that after better than expected Services Data yesterday. So weakness on the unemployment sub index but better data on the services but but of course the number one narrative and the expectation of a meeting between china and the u. S. In washington next month thats giving a little bit of relief to investors. Well have to see what happens
In the media are trying to build up because they would love to see a recession. We are very far from a recession. Asus italian bonds rally the Prime Minister resigns, blaming matteo salvini. Boris johnson will talk brexit with Angela Merkel. We speak to the German Economy minister. So what is the big market event . It is the 30 year bond auction. 30 years the duration. Already trading at negative. What will the appetite be for 30 year paper . 2015, there was a buyers strike. That could be the risk. The reason i focus on the difference, last week with there was talk of fiscal stimulus. That backed up longer dated yields in the United States. It was the tail that whacked the dog. The german bond market move the u. S. Treasury market. We have had near record low rates of oversubscription in july. The past three options, feeling, feeling. We will bring you the data. Have a look at wti. What is the big driver of Market Sentiment donald trump talking about tax cuts, talking about tax cuts, n
Buy greenland. In majore are off 1. 5 indices. The s p quelling back to 2900. The 10 year yield off its lows at 1. 8 . We did get Consumer Confidence data from the university of michigan that was a little disappointing. The 2 10 spread widening, although it is still narrow. Nvidia the best performer in the h p former 500, vying wit ge. Provides trips to game makers. It is bouncing back after an incredible decline yesterday. Guy lets talk about the incredible week we have just had to pay a tumultuous is one way to describe it. Entare joined by ubs investm bank Global Markets strategist. We will correct that in a moment. The week we just had, what is your perspective . I think the bond market is not giving us a signal on u. S. Growth. The biggest question we have 2 10 inversion, is recession in the u. S. This is a global fear of liquidity trap, making a bigger comment on europe and china than it is of the u. S. The fact that the u. S. Is the highest nominal yields aaa asset is the reason
Here today. That tai chi manufacturing that we got a couple of minutes ago was the weakest print we saw this year. It was still0, but showing the gradual slowdown we are seeing in global pmi. The official move that we saw in europe, in the u. S. As well, which is really supporting the Global Growth concern yard of that we are seeing. That is why we are seeing the yen up, 10 7. 60. Asia fx weakening with the dollar a little stronger. We see commodities. We are continuing to see some red when it comes to steal futures in shanghai copper. Lower by 9 10 of 1 . Be with thisng to rally. Looking at the u. S. Side of things with the 10 year yield below 2 . We are seeing for asia bonds as well. I will show you what else is going on, we mention about the u. S. Tenyear. Anese through three yield three year yields. We just got the news about the boj cutting purchases of bonds and a 35year range. Its the First Time Since 2018 that they have done so. They were trying to address the flattening yield
Will shortly go on to what is happening at the ecb and what is happening with mario draghi. 0. 3 . An stocks down to a lot of the impetus will be on Central Banks. A lot of the focus will be on bonds. Leading the stoxx 600 lower, looking at oil. Adding to uncertainty over whether production cuts will actually be extended. Lets focus on the future of the euro area. Five years since mario draghi establishes answer to the jackson hole symposium. You that live as it starts. Investors will be watching closely for any hints on how mario draghi might use the toolkit. He will be keen to convince traders can get back to her target of 2 . A target of 2 . Paul, what is the market expecting from them . High in somens are respect. What is priced in, the ecb will move to action. The kind of feeling in the market is that he has got to. Ive a nod thelast ecb meeting market is looking for more. Asically the front end of the market has ced ecb action, a rate cut inflation is collapsing out of control. T