Monday, October 14–Jim Wyckoff’s Morning Markets Report
Asian and European stock markets were mostly weaker overnight. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. The shine of Friday afternoon’s U.S.-China “Phase 1” trade agreement has quickly worn off. After having the weekend to ponder the matter traders and investors now reckon the agreement is fraught with potholes that are likely derail it. There are now reports China wants more talks before even signing the Phase 1 agreement. “The devil is in the details,” as the saying goes.
Also, the optimism expressed late last week regarding a U.K.-European Union agreement on Brexit has dimmed.
There was more dour economic news coming out of China to start the trading week. China’s exports to the U.S. dropped 22% in September, year-on-year. China’s total exports fell 3.2% in the month. China’s total imports in September were down 8.5%.
Gold prices are posting solid gains Monday, on safe-haven demand amid the dimmer view of last week’s U.S.-China trade talks progress and the weak China economic data.
Nymex crude oil prices are lower and trading around $53.50 a barrel today. The other key “outside market” sees the U.S. dollar index modestly up in early U.S. trading.
There is no major U.S. economic data due for release Monday.