Tuesday, October 8–Jim Wyckoff’s Morning Markets Report
Asian stocks were mostly higher overnight, while European shares were mostly lower. The U.S. stock indexes are pointed toward lower openings when the New York day session begins.
Global stock markets are still a bit wobbly, what with geopolitical issues lingering not far from the front burner of the marketplace, and which could flare up at any time. These include U.S.-Iran tensions, Brexit, Hong Kong civil unrest and the Democrats working to impeach Trump.
As the U.S.-China trade talks get under way this week, the U.S. has just blacklisted 28 Chinese entities due to those firm purportedly repressing Muslims in China. Ideas are mixed on the outcome of this latest round of meetings between the world’s two largest economies. The Chinese may think they can leverage President Trump’s political problems in the U.S. to their advantage. However, Trump has “doubled-down” and said the U.S. will get a good and complete trade deal with China, or none at all.
In overnight news, a manufacturing report out of Germany was upbeat, finally, as industrial output in August was up 0.3% from July.
Nymex crude oil prices are slightly down and trading around $52.50 a barrel today. The other key “outside market” sees the U.S. dollar index slightly down in early U.S. trading.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the producer price index, and the IBD/TIPP economic optimism index. Several Federal Reserve officials speak today, including Fed Chairman Powell to the NABE annual meeting.