No vamos a pagar por el muro, señor presidente

 

(Bloomberg) — Global stock selloff weighed on U.S. equities, with all three major indexes testing support from various daily moving averages.

Most notably, the S&P 500 cash-challenged the 200-DMA of ~2,768.

Earnings misses from several U.S. industrial firms and a Bank of America downgrade of the housing sector fueled equity investor worries.

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Treasuries rose and peripheral European bonds fell amid heavy supply, with the Italian curve steepening.

The spread between 10-year BTPs and Bunds touched the highest since 2013 as the European Commission said Italy’s spending plans are excessive.

The dollar and the yen gained as risk-off sentiment spread, with all emerging-market currencies tracked by Bloomberg in the red.

Mexico’s peso was down ~1.3% after U.S. President Donald Trump threatened to shut the border over migration.

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Elsewhere, crude fell while gold traded near three-month highs.


Key Headlines:

  • TIPS auction tails, bidding metrics fade
  • EU says Italy’s Draft Budgetary Plan for 2019 constitutes “an obvious significant deviation” from EU rules
  • Mexican government’s announcement to abolish oil exports is credit negative: Moody’s
  • U.S. weekly jobless claims fell to 210k

Key Economic Data: 

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Euro Area Economic Watch Germany- It’s not only the football


Image result for korea south flag

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Korea Economic Watch BoK unexpectedly unchanged

 


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Housing Watch Who says you can’t go home?


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Word from Main Street The elusive search for affordable housing

 


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Strategy Snippet An equity guide to the mid-term election

 


-R.W.N II, yours in 322.

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