Friday, September 21–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The S&P 500 and Dow stock indexes are at record highs. There is little risk aversion in the world marketplace at present.
Goldman Sachs is predicting the U.S.-China trade war will be extended and will eventually see the U.S. putting tariffs on all Chinese imports into the U.S. Earlier this week, Alibaba founder Jack Ma said the U.S.-China trade war could last many years.
A feature in the marketplace this week has been falling U.S. Treasury prices (rising yields). The U.S. 10-year T-Note is presently yielding around 3.07%.
Traders and investors are looking ahead to next week, when the Federal Reserve’s Open Market Committee (FOMC) meets to discuss U.S. monetary policy. Many believe the Fed will make a slight interest rate increase at the meeting.
The key outside markets today find the U.S. dollar index mildly up on a corrective rebound from this week’s selling pressure that drove prices to a 2.5-month low on Thursday. The greenback bears have downside technical momentum to suggest a market top is in place for the USDX. Meantime, Nymex crude oil prices are firmer and trading just below $71.00 a barrel. Around present price levels rallies have been capped several times this year.
U.S. economic data due for release Friday includes the flash services purchasing managers index (PMI) and the flash manufacturing PMI.
–Jim
