China’s Iron Ore futures surging over 4% to hit NEW HIGH in five years, breaking through 800 yuan/tonne at one point.
Archives of “June 18, 2019” day
rssTotally crazy: German Bund yields now negative out to 17yrs.
China state media confirms Xi did hold a phone call with Trump
Hopes for a deal rising
Wouldn’t it be funny if they denied it?
Japan issues tsunami alert after magnitude 6.8 earthquake off coast
Earthquake off the northwest coast
The epicenter of the earthquake is 33 km WSW of Tsuruoka.
That’s not a particularly large earthquake (especially by Japanese standards) but tsunamis are often about the depth of the quake and other factors.
Trump spoke with Xi, says they will have ‘extended’ meeting at G20
Positive news from Trump
The good news is piling up for risk assets and the US dollar today.
From Trump:
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.”
There was some worry that the meeting wouldn’t take place at all. The hope is that trade talks restart on the way to a deal.
US stock markets are at the highs of the day, with the S&P 500 up 34 points to 2924 and WTI crude up $1.14 to $53.04.
Gold climbs back above $1350 on ‘additional stimulus’ talk
Gold rises to $1354
Gold yields nothing, but that’s better than billions of sovereign bonds. French, Austrian and Swedish 10-year bonds hit a zero yield today for the first time after Mario Draghi said additional stimulus will be needed “in the absence of any improvement” in the outlook.
Gold rose $13 to $1352 as yields globally sank and stock markets jumped.
The $1350 level is key because it was the February high. It was breached on Friday briefly but the gains later evaporated. The next level to watch is $1358, which was the intraday high on Friday. It will surely break if the Fed sends a dovish signal.
Beyond that, we could be in the process of breaking out of a multi-year consolidation pattern that’s capped at $1381. The sky would be the limit if that gives out, especially if it’s coupled with central bank easing, a trade war and other uncertainty.
French 10-year yields hit 0%
Yields fall below zero for the first time
You now have the privilege of lending the French government money interest-free for 10 years.
Draghi’s comments about rates have led to a big drop in global yields today and French 10s hit zero percent for the first time.
The amount of negative-yielding sovereign debt is at an all-time high.
Draghi says further Interest-Rate cuts remain part of ECB Tools. (BBG)
“In Germany, the word ‘Schuld’ means both ‘debt’ and ‘guilt’ in the United States, the debt belongs to the path of life.”.
Nikkei 225 closes lower by 0.72% at 20,972.71
Tokyo’s main index falls amid mixed mood in Asian trading
Markets are in a state of flux ahead of the Fed tomorrow with the risk mood holding softer in Asia as Treasury yields are notably weaker alongside a more subdued performance in US equity futures to start the day.
The lower yields is helping to push gains in the yen and swissie to start the session but there isn’t any major breakouts yet among major currencies. The bouncing of risk sentiment is likely to continue over the next few sessions until the FOMC meeting is out of the way so expect more of the same in the European morning today.