Macro Morning

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By Chris Becker 

US markets reopened overnight, and were flummoxed by a weak ISM manufacturing print that retracted for the first time in three years, sending risk sentiment in negative territory. Stocks and the USD fell while Treasuries rallied sending the 10 year yield down to a three year low, hovering just above 1.43% as the market prices in more Federal rate cuts. Gold was a big benefactor overnight, while other commodity prices fellback.

The big news was the development in the British Parliament as freshly minted PM Boris Johnson lost his majority as a key Tory member defected to the Lib Dems midway through his maiden Brexit bill, which was defeated. This will likely trigger a general election, sending Pound Sterling higher and volatility higher!

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