US stock futures fluctuated early morning as investors digested a dovish turn from the ECB. Its new targeted longer-term refinancing operations stimulus program will start in September which is scheduled to last until March 2021. While their dovish stance underscored concerns over current stage of global economy, it also raised hopes to stimulate the economy by providing low rate loans to European banks. After the announcement of their third stimulus injection since 2014, both European bonds and treasuries advanced on the news. On the trade front, while President Trump is still pressuring US negotiators to reach a deal with China soon, some economists raised concerns that the potential breakthrough might not lead to a full recovery of the economic damages that the trade war has caused. The dollar strengthened for a seventh day and WTI crude climbed this morning.
In the economic calendar today, Initial Jobless Claims printed a stabilized reading of 223k, a slight decline from 226k revised prior vs. 225k consensus. Continuing Claims also fell to 1755k from unrevised prior of 1805k vs. 1772k consensus. Lastly, Bloomberg Consumer Comfort continued to display strength in consumer spending as it came in at 62.10, the highest level since late 2000, vs. 61.00 prior. Fed Governor Brainard will speak on the economic and monetary policy outlook at Princeton University at 9:15 AM (PT) today.
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US stock futures fluctuated early morning as investors digested a dovish turn from the ECB. Its new targeted longer-term refinancing operations stimulus program will start in September which is scheduled to last until March 2021. While their dovish stance underscored concerns over current stage of global economy, it also raised hopes to stimulate the economy by providing low rate loans to European banks. After the announcement of their third stimulus injection since 2014, both European bonds and treasuries advanced on the news. On the trade front, while President Trump is still pressuring US negotiators to reach a deal with China soon, some economists raised concerns that the potential breakthrough might not lead to a full recovery of the economic damages that the trade war has caused. The dollar strengthened for a seventh day and WTI crude climbed this morning.
In the economic calendar today, Initial Jobless Claims printed a stabilized reading of 223k, a slight decline from 226k revised prior vs. 225k consensus. Continuing Claims also fell to 1755k from unrevised prior of 1805k vs. 1772k consensus. Lastly, Bloomberg Consumer Comfort continued to display strength in consumer spending as it came in at 62.10, the highest level since late 2000, vs. 61.00 prior. Fed Governor Brainard will speak on the economic and monetary policy outlook at Princeton University at 9:15 AM (PT) today.
The curve has bull-flattened with UST 10-Year yield down 4.15 bps.