A day that started out with renewed hope for stock markets bulls ended in tatters at the end of a big bearish key reversal in the afternoon. Much stronger than expected ADP payrolls sparked a resurgence in bullish interest sending the NASDAQ to a new high and the Dow to a big intraday gain. In the last couple of hours, however, markets were slammed back down in a big way turning gains into losses. Minutes form the last Fed meetings showed that in addition to raising interest rates, members favour starting to reduce the central bank’s balance sheet later this year, adding to an already hawkish monetary outlook. The notion that the easy money sloshing around that has ignited the big market gains of recent years may be trimmed back and that the liquidity party may be about to end put traders in a foul mood to finish the day Meanwhile, crude oil took a downward turn of its own after DOE inventories failed to confirm the decline seen yesterday’s API inventories. WTI did manage to hold $50.00 as today’s reports did indicate that supply and demand appear to be coming back into balance after a winter of big builds. This bearish turn of events appears to be sending downward momentum into the start of today’s Asia Pacific trading day as futures for the Nikkei and the S&P/ASX have been falling back in the last few hours as well. A light news calendar except for China Caixin PMI suggests that there may not be much to take attention away from the big US trading reversal. Events and speculation heading into the upcoming summit between US President Trump and Chinese President Xi. Corporate News Bed Bath & Beyond $1.84 vs street $1.77, 20% dividend increase Economic News Significant announcements released overnight include: US ADP Payrolls 263K vs street 190K US ADP payrolls previous revised down to 245K from 298K US DOE crude oil inventories 1.5 mmbbls vs street (0.15 mmbbls) US DOE gasoline inventories (0.6 mmbls) vs street (1.75 mmbbls) US DOE distillate inventories (0.5 mmbbls) vs street (1.0 mmbbls) Service PMI Reports: US ISM 55.2 vs street 57.0 US ISM new orders 58.9 vs previous 61.2 UK 55.0 vs street 53.4 Germany 55.6 as expected France 57.5 vs street 58.5 Italy 52.9 vs street 54.3 Spain 57.4 as expected Upcoming significant economic announcements include: (Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore) 11:45 am AEST China Caixin service PMI previous 52.6 8:30 am EDT Canada building permits previous 5.4% 8:30 am EDT US jobless claims street 250K 10:30 am EDT US natural gas storage previous (43 BCF)