Subdued morning as markets focused on the G7 announcement which was in turn rather uninspiring, with the theme being a wait and see approach - but very much ready to use fiscal tools where necessary. That being said RBA had already delivered a rate cut and China may well preside over one tonight. The proverbial cat was however put amongst the pigeons when the Fed cut base rates by 50bp – which was in line with market expectations. So, although greeted with a systematic bounce, markets were soon generally lower as the markets seemingly expected more shock and ore than simply just satisfying expectations (Trump was again on his soapbox saying Fed will cut more).
OPEC also announced a 500k-1mbpd output reduction – also met with little excitement.
On base, we are all into option declaration for tomorrow thereafter these markets may be open to broader moves. Zn spreads continue to deteriorate ahead of expected index rolls.