Wednesday, September 19–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. There continues to be little to sometimes only modest risk aversion in the world marketplace at present.
Amid a lack of other fresh fundamental news so far this week, focus remains on the trade war between the U.S. and China. The U.S. hit China with more tariffs this week and China vowed to retaliate. Many traders and investors took note Tuesday of a comment by Alibaba founder Jack Ma, who said the trade dispute between the world’s two largest economies could take decades to resolve. Ma implied that the Chinese culture won’t allow that nation to “give in.” But Americans reckon President Trump won’t either. The U.S.-China trade war and the recent strength of the U.S. dollar have hit emerging markets and their currencies hard the past few months.
The key outside markets today find the U.S. dollar index weaker and Nymex crude oil prices slightly down and trading just below $70.00 a barrel.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential construction and the weekly DOE liquid energy stocks report.
–Jim
