More Stimulus and More Trade Boost Investors’ Outlook

Yesterday’s announcement that China will be increasing its purchase of American agricultural products and news of possible massive stimulus in the European Union have equity markets set to open in rally mode while a modest sell-off hits the Treasury market. China’s compliance with Phase One requirements of America’s trade agreement with China is seen as a positive development in the rocky relationship between the two nations. Meanwhile, discussions in Europe continue to reflect the prospects of a 750B Euro stimulus program to ease the negative impact of the continent’s own economic lockdown.

The Treasury’s Ten-Year has lost about a quarter-point in price taking its yield up a couple of basis points to around 0.74%. Crude oil has gained a little over a dollar/barrel to right at $40. Gold has moved up to around $1,735; a gain of about $12. No big data announcements are scheduled for today.