Monday, August 12–Jim Wyckoff’s Morning Markets Report
Asian and European stock markets were mostly lower overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. The first trading day of the week sees a “risk-off” trader and investor mentality. There is once again protesting in Hong Kong, which has shut down its main airport. Market watchers wonder how long mainland China will allow the civil unrest.
Gold prices and U.S. Treasury prices are up Monday, on safe-haven demand.
China’s central bank on Monday set its currency, the yuan, exchange rate with the U.S. dollar at 7.0211, which is above the 7 level the U.S. has deemed problematic. This exchange rate will continue to be closely monitored. Most of the world marketplace views the U.S.-China trade negotiations as having deteriorated in August.
The key “outside markets” today see Nymex crude oil prices down and trading around $53.75 a barrel. The U.S. dollar index is trading slightly up in early U.S. action.
U.S. economic data due for release Monday is light and includes the monthly Treasury budget statement and the USDA monthly supply and demand report.