Wednesday, December 20–Jim Wyckoff’s Morning Markets Report
World stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. House and Senate passed the highly anticipated tax-reform bill Wednesday. Now the bill heads back to the House for final approval and then a signature by President Trump. Lower U.S. tax rates coming in 2018 have added to the upbeat attitudes among traders and investors worldwide.
In overnight news, reports said China is expected to soon launch a Chinese yuan-based crude oil futures market. China wants to take at least some of crude oil’s market-making out of London and New York. China is the world’s largest importer of crude oil. A successful China crude oil futures market would challenge the dominance of the U.S. dollar in world crude oil pricing. However, many energy market watchers say the Chinese have a long way to go before a China oil futures market would seriously challenge those in New York and London.