The pro-Russian separatists take over an airport near
Donetsk which may prohibit a trip to the region by the new leader-elect
Poroshenko. The pro-Russian separatists maintain a strong wedge between East
Ukraine and West Ukraine and do not recognize the election results where
Poroshenko is the winner with about 55% of the vote. Crude oil remains flat
with WTIC sticky at 104 and Brent sticky at 110.
[Text is Redacted: Purchase May 2014-05 to Read the Complete Chronology]
As Italy’s 10-year yield teases 3%, Spain is already under at
2.91%. France’s 10-year yield is 1.82% and Germany 1.42%. The US 10-year yield sits
at 2.54%.
ECB’s Draghi speaks and says he “will not permit inflation
to stay low for long.” (It should be worrisome to world citizens that arrogant central
bankers believe they can ‘permit’ and ‘not permit’ the way so-called ‘free’ markets
and the economy function). He says stay alert for “disinflationary conditions”
and a “negative spiral.” Draghi can still not bring himself to utter the ‘D’
word; deflation. He says he is “prepared for action” if any risks develop. The
euro is 1.3636 floating higher so his lip service no longer weakens the euro.
Traders appear to have the pending Draghi easing announcement on 6/5/14 priced
into markets so the risk appears to be that Draghi under delivers.
US markets are closed today in observance of Memorial Day. The
US celebrates the day with parades, ceremonies for veterans at the cemeteries
and of course, hot dogs, apple pie, fireworks and plenty of flag-waving. The
California wild fires are wrestled under control but the Arizona wild fires are
only 25% contained and expected to continue burning for a few days or weeks.
S&P futures +6. Dow +60. Nasdaq +12. Gold 1293. Global markets are revved
up and ready to print more record-breaking all-time highs. Ukraine,
schmoocraine.
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