Friday, May 29–Jim Wyckoff’s Morning Markets Report
Global stock markets were mostly lower in overnight trading. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins. There is increased risk aversion in the marketplace late this week, as the U.S. and China appear on a collision course that could set off the next “cold war” between the two largest economies in the world. President Trump sometime Friday is expected to hold a press conference to address China’s actions to tighten its grip on Hong Kong. Trump will also likely comment on China’s involvement in suppressing early Covid-19 infection rates in China. Still, at present traders and investors have no idea what Trump will say or do.
In overnight news, the Euro zone consumer price index for May rose 0.1% compared to up 0.3% in April. The May reading was in line with market expectations.
The important outside markets see the U.S. dollar index lower early today and hitting a 2.5-month low. Nymex crude oil prices are lower and trading around $32.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.7%.
U.S. economic data due for release Friday includes personal income and outlays, the advance economic indicators report, the ISM Chicago business survey, and the University of Michigan consumer sentiment report. Fed Chairman Jerome Powell also speaks at an event today.