 Good morning to your daily news update from the Frankfurt office of CMC markets. Wow. What a day for the crude oil markets for brand and WTI they Yeah, went sharply up yesterday just right after the opening here in Frankfurt There were rumors coming out from the G20 meeting in China that Saudi Arabia Wants to Announce something of create significance and then there was Russia saying okay We will support what Saudi Arabia will announce around noon and so in the morning hours There was a lot of speculation about what the Saudis will Will announce in in China and then at noon prices went up by five percent in print and WTI And then there was Saudi Arabia actually announcing that they will have some special some special Institution that they will build in October together with Russia and this institution will have the task and the the goal to watch oil markets and stabilize oil markets, but only stabilize them by recommending best practices and recommend best production volumes But automatically this means that there need to be as many countries joining that institution as possible So they want to reinstate an OPEC, which they have virtually dropped in the year 2014 there was one day back then the Saudi Arabia said okay market prices and the free markets should Set the price and the fair price of oil and now they tried to reinstate and reinstall that OPEC and reinstall it and Institution which is somehow given recommendations to whom I don't know so Most traders didn't know either yesterday So they dropped their long positions in crude when sharply down again So over half of the gains have been lost if you look at the intraday chart of WTI and prend yesterday They formed in head and shoulders pattern and the target of that already Activated and triggered head and shoulders pattern are new daily lows. So lower than yesterday's open It's a target of that topping formation. So it will be interesting to see what comes out of WTI and Apprent prices today So when it comes to cheat cheat 20 The great 20 meeting and summit in China. There was also Some news from Japan. There was Shinzo Abe the Japanese premier and Kuroda the Bank of Japan President who said that actually after they somehow checked the running QE programs and They wanted to find out that's what they did in the past months They just checked every single step they took in regards to Quantitative easing and they tried to find out which one of them is if it's still effective has some effect whatsoever and They found out that well, they do not have the effects that The Bank of Japan and Shinzo Abe in the government would like to have and so many So so after they said that just some weeks ago that it doesn't have that the wish the wished effect They said actually they the markets started to speculate in two directions one direction was okay There will be helicopter money cop helicopter money coming and the others said okay, there could be some sort of cancellation of several Puzzle pieces of that QE Scheme they have so they roll back their asset buying they might roll back their negative interest rates so So it was yesterday Shinzo Abe or Kuroda one of them saying okay the end result of that Checking of running QE programs will not be a rollback any QE measures that are active right now. So It's open again. So markets are now leaning more towards the Helicopter money and even more negative rates Coming in Japan. So they still try of course to weaken the yen the yen is too strong Although the US dollar has had some rally so dollar yen has bounced off the hundred yen mark To the upside so the yen has weakened a bit, but it has been at hundred And 20 and now it's around a hundred. So the yen is much too strong for the Four Japanese government and the central bank there So they will try to do anything to weaken the yen again. So that will be interesting to see how they will do that monthly when you look at all central banks globally they buy assets in the volume of 200 billion US dollars monthly by stocks like Japan by Government bonds like in the eurozone the UK Bank of England is buying corporate bonds as does the ECB. So together everything is 200 billion around 200 billion monthly And of course that leads to some sort of complacency in the markets and equity markets if you look at the trading books in the US US futures Markets like the CME you see that the equity longs of hedge funds and other Speculators are at their highest level ever. And if you look at the VIX, which is the volatility index Which measures which is a fear gorge which measure measures the implicit volatilities in the In the S&P 500 index there are record short positions in there. So Huge complacency out there. There is nobody really expecting a September rate hike by the Federal Reserve Which is an implicit danger risk for the markets because if the Fed Will high grades it will be a big surprise. So keep that in mind. It's just two weeks from now We'll be the next Federal Reserve meeting So yeah, that is that and of course record long positions in the US equity markets Which reopen after Labor Day holiday yesterday Reopen today. It will be interesting to see if the Dow Jones is able to manage a break above the 18 18,600 Resistance so it has been in a range between 800 18,600 and 18,000 Yeah, so like 250 is the lower bound so it has formed a range so it should break up Break to the upside with high volumes because we have been in this summer time Summer vacation volumes have been relatively weak. So there's if the Dow Jones were to break to the upside There should be volume behind that move that would be interesting to check