Thursday, May 23–Jim Wyckoff’s Morning Markets Report
World stock markets were mostly down overnight. U.S. stock indexes are also pointed toward solidly lower openings when the New York day session begins. Risk aversion has again surfaced late this week. Parliamentary elections in the U.K. and The Netherlands get under way Thursday, with the populist parties (euroskeptics) possibly doing well. Other European countries’ election results will be announced Sunday. The U.K. Brexit issue that remains unresolved amid Prime Minister Theresa May’s planned departure continues to weight on the British pound.
Simmering closer to the front burner of the world marketplace today is the U.S.-China trade war that may or may not come to resolution in the next few weeks.
The U.S.’s more aggressive stance against Iran in recent weeks is another matter that could quickly elevate trader and investor tensions. A U.S. naval task force is in the Persian Gulf region.
Gold prices are getting a bit of a safe-haven bid Thursday from the keener uncertainty in the marketplace.
The key “outside markets” today see the U.S. dollar index higher and not far below this year’s high, which is a two-year high. Meantime, Nymex crude oil prices are lower and trading around $60.50 a barrel.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the U.S. flash services and manufacturing purchasing managers’ indexes, new residential sales and the Kansas City Fed manufacturing survey.
–Jim
