United States

Via Kevin Muir of The Macro Tourist blog,

The easiest way to become a trade-a-saurus is to assume correlations will continue forever and mindlessly fade divergences with the assumption they will recouple. Yet these divergences often offer clues that something might have changed and deserve further investigation.

Over the past couple of decades, ten year US inflation breakeven levels have traded inversely with the US dollar. This should be no surprise and makes sense. Lower US dollar equals more inflation.

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Insanity Prevails In The Stock Market

Posted with permission and written by Dave Kranzler (CLICK HERE FOR ORIGINAL)

After API's surprise gasoline build (sending RBOB prices lower), DOE reported a draw (though smaller than expected) but crude saw the 8th weekly build in a row - pushing US crude inventories to a new record high. Production continued to surge (above 9mm) to new cycle highs.

API

• Crude +2.502mm (+3mm exp)
• Cushing +544k
• Gasoline +1.84mm (-1.5mm exp)
• Distillates -3.73mm

DOE

While the key number analysts were looking for in today's Personal Spending data was the PCE Price Index, both headline and core, which rose by 1.9% and 1.7% respectively, the latter coming in as expected, just shy of the Fed's 2.0% inflation target, the internals on US incomes and spending were just as notable.  Here, the silver lining of a rise in incomes (+0.4% MoM vs +0.3% exp) was dashed by a disappointingly slow growth in spending (+0.2% vs +0.5% prev).

Via Peter Korzun of The Strategic Culture Foundation,

The United Arab Emirates (UAE) has signed an outline agreement to buy Russian aircraft. It also plans to implement a joint project with Russia to develop a next-generation fighter that could enter service in seven or eight years.

According to Russian Industry and Trade Minister Denis Manturov, who led the Russian delegation at the IDEX 2017 exhibition, the UAE is to purchase a batch of advanced Sukhoi Su-35 Flanker-E fighters.