Wyllian Capucci
06/21/2021
Inflation?
What inflation?Reflation trade remains firmly out of favor this morning, with the30-year Treasury yield falling below 2% for the first time sinceFebruary during the Asia session. The five to 30 year yield spreadnarrowed to the smallest gap since December, with investorscontinuing to react to last week’s hawkish Fed. These investorswill likely be kept on the alert this week, as many speakers from theFed are scheduled to share their ideas with President JeromePowell who will testify in Congress tomorrow
Chinese repression
Bitcoin plummeted more than 10% after the intensification of movements against thecryptocurrencies in China. The country’s central bank said banks and companiespayment must not provide payment services for related transactions.to cryptography. Previously, the authorities of the city of Ya’an, in the south of the country,stepped up action to control digital mining in the energy-rich regionhydroelectric power plant. Ethereum traded below $2,000 while DeFi currenciesremained under pressure
Nuclear impasse
The election victory of conservative cleric Ebrahim Raisi in Iran likelywill delay the resolution of nuclear negotiations and therefore the return of oil from thecountry to the international market. Raisi, who is also subject to US sanctions,should assume the presidency in August. The lack of progress in the negotiations and,possibly greater difficulty in reaching an agreement, helped the oil to holdclose to $72 a barrel this morning.
Mixed markets
Global equities are having a relatively volatile start to the week, with a reversalsettlement that dominated the first negotiations. Overnight, the MSCI indexAsia Pacific fell 1.5%, while Japan’s Topix index closed 2.4% lower. AtEurope, Stoxx 600 Index rebounded from opening losses to trade 0.4%above at 6:50 am. It’s been a similar story with the S&P 500 futures, whichnow firmly point to a jump in the open, the Treasury yield of 10years is at 1.436% and gold earned.
Coming
The Chicago Fed National Activity Index for May is at 9:30 am. The presidentEuropean Central Bank, Christine Lagarde, speaks at 9:30 and 11:15. the president ofSt. Louis Fed James Bullard and Dallas Fed President Robert Kaplan givebusy week for Fed Speakers begins at 10:45 am, with Fed ChairNew York Fed, John Williams, rising later. Amazon.com Inc. celebratesyour first day
Source:https://wintrademarkets.com/
