Headlines Feb 26

​Metals

Copper Rally Triggering Discussion about Buyers Trying To Find Cheaper Alternatives – Elon Musk

Nickel Is Tesla’s Biggest Concern In Expanding Battery Output – Elon Musk

Copper Crunch Is Set to Ease as More Concentrate Heads to China

Japan’s Aluminum Products Shipments Down 2.3% in Jan.

China Iron Ore Stockpiles Down 0.6M Tons to 126.5M Tons – Mysteel

China’s Economic Recovery Continues in February Despite Holiday

Gold Gets Hit on Yield Spike

 

Oil

Oil Hit by Wider Sell-Off

Maintenance At Major Fields And Pipelines In The North Sea Will Further Tighten Supplies In The Key Region In Coming Months

China’s Oil Stockpiles Have Risen To Around 100 Days Worth Of Net Imports – BBG

Power Outages Main Cause of Oil, Gas Shut-Ins: Texas Update

North Sea Oil Field Work to Cut Supply From Already Tight Market

Toyota to Sell Hydrogen Fuel Cell Module From as Soon as Spring

ICE Sent Letter to Platts Cautioning on Speedy Brent Oil Revamp

Nigeria to Boost Bonny Light Crude Exports to 227k B/D in April

Canada’s Synthetic Crude Prices Surge Before Upgrader Shutdowns

Mexican Oil Port Halts Loadings on Lack of Isthmus Crude

LyondellBasell Houston Expects to Resume Production by Weekend

Exxon Baytown May Take 2 Weeks to Restart Units After Storm

Citgo Corpus Christi Refinery Completing Maintenance After Storm

Oil-Rich Canadian Province Asks Court to Void Trudeau’s Reforms

Greek Oil Refiner Hellenic Petroleum Sees Demand Improving in Q2

Exxon and Total Refineries Prepare to Restart

Russian Refining Appears to Dip; Arb Flows

 

 

Events & Synopsis

GameStop and Beyond Meat Are Among The Biggest Gainers In Premarket Trading

President Biden travels to Texas following last week’s winter storms

U.S. House plans to vote on Biden’s $1.9T Covid relief bill

FDA advisory panel meets to review Johnson & Johnson vaccine data

Global Bonds Is Helping U.S. Stock-Index Futures Recover Slightly At The End Of A Bruising Week, Even As Most Asian And European Equities Dropped – BBG

House Is Poised To Pass Biden’s $1.9t Stimulus Legislation, With Vote In Chamber Expected Today That Will Bring Most Americans One Step Closer To Receiving $1,400 Relief Payments

Chaotic Treasury Selloff Fueled by $50 Billion of Unwinding

Central Banks Fight Back Against Bond Rout, Calming Investors

In a Flash, U.S. Yields Hit 1.6%, Wreaking Havoc in Markets

Japan Funds Seen Shunning Treasuries on ‘Falling Knife’

Another ‘Huge Week’ of Equity Inflows at $46.2b, - BofA

Saudi Crown Prince Implicated in Khashoggi Murder, U.S. Finds

Biden Takes First Military Action With Strikes on Syria Militias

Biden Trade Pick Says China Must Deliver on Phase-One Pact

EU, U.K. Near Post-Brexit Accord on Finance Regulation Forum

France Aims to Use Brexit to Grab More U.K. Finance Jobs

Bitcoin Heads for Worst Weekly Slide in a Year Amid Selloff

CQS Shuts $525 Million Hedge Fund as Narayanan Joins Citadel

Beckham-Backed Cannabinoid Firm Cellular Goods Soars in U.K. IPO

Ex-Credit Suisse CEO Thiam Raises $300 Million for Upsized SPAC

British Airways Parent Sees Signs of Hope After $9 Billion Loss

Swiss Economy Grew at End of 2020 on Buoyant Industry

EU Told to Back Vaccine Passports or Google May Do It Anyway

French Inflation Stronger Than Expected But Spanish Prices Wilt

Cellnex to Buy Cyfrowy Polsat Tower Unit in $2 Billion Deal

Pineapples Are at the Center of Latest China-Taiwan Dispute

 

                                 

AIG Raised to Overweight at Atlantic Equities; PT $55

Danone ADRs Rated New Equal-Weight at Morgan Stanley; PT $14

HP Inc Raised to Overweight at JPMorgan; PT $35

Fly Leasing ADRs Cut to Hold at Deutsche Bank; PT $10

GFL Environmental Cut to Neutral at JPMorgan; PT C$39.11

L Brands Raised to Overweight at Morgan Stanley; PT $65

People’s United Cut to Hold at Jefferies; PT $18

SLR Investment Corp Cut to Neutral at JPMorgan; PT $19

Verra Mobility Cut to Equal-Weight at Morgan Stanley; PT $14

Carvana Raised to Overweight at Morgan Stanley; PT $420

Crestwood Equity Raised to Equal-Weight at Wells Fargo; PT $22

PetroChina ADRs Raised to Buy at Goldman; PT $61

 

9am: U.S. House meets at 9am, first votes predicted as early as 10am

9:00am: House Oversight and Homeland Committees hold hearing on role of private tech in SolarWinds breach

9:30am: House Rules Committee to hold meeting, vote on H.R. 1319 — American Rescue Plan Act of 2021

9:40am: President Biden, First Lady Jill Biden Depart White House En Route To Houston To Meet With Local Leaders And Discuss Recovery

11:00am: White House Covid-19 response team holds briefing

1pm: Bidens arrive in Houston

1:55pm: President Biden tours Harris County Emergency Operations Center

3:20pm: Bidens Tour Houston Food Bank, Meet Volunteers

6pm: President Biden delivers remarks at FEMA Covid vaccination facility at NRG Stadium

7pm: Bidens depart Houston en route to Washington

10pm: Bidens return to White House

 

 

Forex

USD Edged Higher And Treasuries Advanced As A Global Selloff In Bonds Eased After Central Banks From Asia To Europe Escalated Their Fight To Calm Panicking Markets With A Mix Of Debt Purchases And Intervention Threats

A dollar gauge rose for a second day, rising as much as 0.5% to its highest since Feb. 8. 10-year Treasury yields declined as much as 7bps to 1.45% Friday

The Swiss franc and Japanese yen outperformed peers while Australian and New Zealand dollars led G-10 losses. The pound fell to its lowest in over a week as month-end flows made for choppy price action

“Commodity currencies are caught between the positive of stronger global growth and the risk of the global economy overheating,” said David Forrester, an FX strategist at Credit Agricole CIB in Hong Kong

Market detectives looking to explain the fury of Thursday’s Treasuries selloff will find most of the evidence pointing to technical rather than fundamental reasons

The Standoff Between Central Banks And Bond Traders Took Center Stage In Asia On Friday After Treasury Yields Surged To A One-Year High, Forcing Policymakers Into A Slew Of Debt Purchases To Calm Panicking Markets

U.S. Consumer Prices Are Headed Higher -– At Least According To The People Who Set Them. Corporate Leaders Are Increasingly Confident That They Can Charge More For Their Products Without Losing Business

Japanese Retail Traders Are Sticking With Bets That The Turkish Lira Will Resume Its Rally, Even As The Currency Bore The Brunt Of A Rout In Emerging Markets This Week

Investors will consider buying Treasuries after 10-year U.S. Yields Rose Above The Closely Watched Level Of 1.5%, According To Mitsubishi UFJ Kokusai Asset Management

Australia’s 10-Year Bonds Look Attractive At A Yield Level Of 1.75%, And While Markets Remain Volatile, It’s Time To Start Incrementally Building A Long Positions Versus Treasuries, According To Commonwealth Bank Of Australia

GBP/USD -- As Flagged Thursday, Nine-Day RSI Was Showing Some Early Signs Of Reversal Which Eventually Transformed To A Clear Sell Indication; A Close Below 1.3937 Means The Trender Indicator Will Turn Bearish For The First Time Since Mid-December; Mean Reversion Could See 1.37 Handle Under Test, Especially If Base Line At 1.3902 Fails To Support

EUR/USD -- The fact that the pair has respected support by the 21-weekly MA, as well as the base line and the Trender indicator on the weekly, shows that it remains firmly on a bullish trend

USD/JPY -- The Pair Looks To Escape 233-Dma Gravity Yet Has The 55-Weekly Ma Resistance Standing Strong For Now

AUD/JPY -- The Risk Proxy Finally Enters Correction Mode As Overstretched Position On The Daily Called For Profit Taking