Friday, August 16–Jim Wyckoff’s Morning Markets Report
Asian and European stock markets were higher overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Risk appetite is more upbeat to start the last trading day of the week.
The U.S. stock market got a boost in afternoon trading Thursday when reports hit the wires that European Central Bank rate-setting official Olli Rehn said the ECB will be rolling out new economic stimulus measures in September. The U.S. fed funds futures market now shows a 100% chance the Federal Reserve will lower its key interest rate in September. Asian and European stock markets also saw gains Friday due in part to the ECB news.
On the U.S.-China trade war front, President Trump late Thursday said he will be talking to his counterpart, President Xi, “soon.” Trump also made comments that could be construed as both negative and positive regarding progress on resolving the dispute.
The key “outside markets” today see Nymex crude oil prices higher and trading around $55.50 a barrel. The U.S. dollar index is modestly higher.
U.S. economic data due for release Friday includes new residential construction and the University of Michigan consumer sentiment survey.