Amid consulate closures and arrests over spying allegations. Ray dalio warns the capital war could hit the dollar and gold source to a record high. Ryanair says its biggest fear is a second wave of the coronavirus as the Airline Reports a loss for Quarterly Earnings as the u. K. In forces a 14 day quarantine on travelers from spain. Plus, sap plans to spin off its Consumer Survey unit two years after buying the firm. It also beat Free Cash Flow forecast for the year. We are under an hour away from the start of the cash equity trading in europe and the picture, firmly risk on which might seem a little counterintuitive given we are seeing gold at record highs but this is the state of play. Euro stocks futures called 1 5 of a percent higher. Travel stocks could be active given the decision to impose a quarantine on travelers returning from spain amid increasing concerns of a second wave in the country. Ftse futures called higher by a similar margin and s p 500 mini futures in the u. S. ,
A threeday look at futures, dollarchina. You have sterling on the back foot, relative renewed optimism over brexit and you have dollaryen on offer. On the back of this return into the risk appetite. Donald trump making another comment on top of on top of him saying the talks went well about an hour back, he also said the chinese are very nice. That has driven dollarchina up. U. S. Futures, 29. 50 into the open. Look at the equity markets, the shanghai composite, topix index, decenthave asx session, volumes coming back but not quite to the recent averages. Quickly, look at the bond market. Will talk about a reposition out of sri lanka but that is what you need to know. You haveear yield, japan, australia, the u. S. , and what youve seen in gilts. 13 basis points, secondbiggest in absolute value, biggest jump since referendum in percentage turns, biggest jump on record. We will see if this continues. Are we setting ourselves up for disappointment . Puttinghway to brexit, yield on a stair
Surveillance. Thee a lot going on in markets. After this attack on an iranian tanker, you can see crude oil gaining 2 . Is at 64. 53. Gaining andrently the pound is at 1. 2 460. We are also getting headlines outlook iea cutting its as the economy eclipses the saudi attack. They are pointing to a little bit of Downside Risk in the worldwide economy, saying that will impact demand. Lets get straight to the bloomberg first word news in new york city. Quote very well. Thats how the first day of trade talks went according to donald trump. Today, he plans to meet beijings top negotiator. These are the first highlevel talks since july. But sides are working to end the 18 month long trade war. Besides appear willing to agree to a partial deal and would leave controversial issues for the future. And two associates of the president s personal lawyer are accused of violating Campaign Finance laws as part of a plan to oust the u. S. Ambassador. This scheme is part of the u. S. House impeachment in
Overnight in asia. The nikkei higher by 1. 1 . Hang seasoning up 2. 3 and shanghai up. 8 . Youll also see green arrows in europe the dax up 1. 9 . Cac is up. Gains for italian stocks too in the treasury market, at this point, 10year yielding 1. 67 . Twoyear at 1. 551 30year up at 1. 61 . Iranian Officials Say two missiles trunk an iranian tanker in the red sea crude prices, as a result of this, they are jumping up close to 2 wti crude now 54. 47. They are saying that damaged two store rooms aboard the tanker and caused an oil leak that attack happened about 60 miles north of the city jeda six months after the attack of the oil tanker in hermuz and the saudi attack never good to conjecture anything they have been the attacker and you wonder was there Something Else going on because they didnt point fingers, you wonder. Was it a screw up but we have no idea. No idea they were attacked by someone. Who knows. Two missiles hit a tanker that much we know. Lets talk about the trade headlines.
2 on the s p 500. Wednesday,1. 5 on thursday up 1. 4 . Today, finishing the week on a hideout barring some major breakdown and expectations for these trade talks. 2 week highs fastenal, apple hitting intraday highs today. Take a look at the bond market. If we can flip back to that, this is where it really becomes a story here. Were seeing the bulls get squeezed, basically coming to a halt. We are up about 20 basis points this week alone on the 10 year. That threemonth10 year yield curve we saw, that inversion ,hat we got earlier this year we are now on inverted. The dollar week another day, three Straight Days in a row, and nymex crude, the bti up about 0. 8 . Hitting record highs. Absolutely sensational. Two things happening around the world. One is trade. The other is brexit. This is the british pound over the last five days. You can see it happening yesterday, and another big rally today for the pound. It is a huge move. People are getting squeezed really aggressively here. You can