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Trump on Iran says he is going to sit back and wait

Trump on Iran

  • Trump says he is going to sit back and wait, we’ll see what happens
  • He says it’s getting harder for him to make a deal with Iran, says it could go either way very easily
Obviously they’re not in a rush to war but that doesn’t mean they’re not putting some pieces in place. You don’t pre-announce any attack.
Separately:
  • Working on trade deals with Chinese President Xi

US major stock indices are open for trading. Higher on the day.

Nasdaq lead the charge today.

The major US stock indices are open for trading and all are higher on the day in the morning snapshot:
  • S&P index +5.9 points or 0.20% at 2982.52
  • NASDAQ index of 30 points or 0.37% at 8177.10
  • Dow industrial average of 7 points or 0.2% at 27157

It will be a another big week for earnings with Boeing, Caterpillar, Facebook, Tesla, Alphabet, Intel, and Amazon some of the bigger names on the earnings calendar. Below is just a snapshot of the some of the more familiar names that will be releasing this week.

The major release calendar this week.

Trump starts the new week with some advice for the Fed

Three tweets from Trump

“With almost no inflation, our Country is needlessly being forced to pay a MUCH higher interest rate than other countries only because of a very misguided Federal Reserve. In addition, Quantitative Tightening is continuing, making it harder for our Country to compete. As good…..
….as we have done, it could have been soooo much better. Interest rate costs should have been much lower, & GDP & our Country’s wealth accumulation much higher. Such a waste of time & money. Also, very unfair that other countries manipulate their currencies and pump money in!
It is far more costly for the Federal Reserve to cut deeper if the economy actually does, in the future, turn down! Very inexpensive, in fact productive, to move now. The Fed raised & tightened far too much & too fast. In other words, they missed it (Big!). Don’t miss it again!”
We’ve heard all this before.

Pompeo says that US does not want a war with Iran

Comments by US secretary of state, Mike Pompeo

  • Says it is up to UK to take care of their own ships (when asked about the incident on the British tanker being seized)
That’s a bit of a change in tone after they had previously warned Iran of ‘serious consequences’ on Friday. It’s all a bit of a mess but the ongoing tensions in the Middle East will at least help give oil prices a bit of a relief after last week’s downfall.

108 in USD/JPY flagged as resistance

Credit Agricole on US/Yen following the election in Japan over the weekend:

  • may test 108
  • Japanese equities could also head higher
  • 108 is likely to see sellers enter though as the response to the election win is likely to be restrained. It wasn’t a surprise result.
  • Yen to regain momentum as focus switches back to trade talks
  • USD to weaken with the dovish Fed ahead, EUR to weaken with a dovish ECB also
  • 106.50 a downside level to watch for support
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