Wednesday, June 12–Jim Wyckoff’s Morning Markets Report
European and Asian stock indexes were mostly lower overnight. The U.S. stock indexes are also pointed toward weaker openings when the New York day session begins. The U.S. indexes at mid-week have ended an impressive rally streak that lifted prices well up from the early-June three-month lows.
Gold prices are posting good gains today amid the keener risk aversion in the marketplace, as evidenced by the weaker global equity markets.
In overnight news, China’s May consumer price index hit a 15-month high, at up 2.7%, year-on-year. The CPI was up 2.5% in April. Food prices led the rise in CPI, with pork prices up 18%.
The U.S. economic data point of the day is the consumer price index report for May, which is expected to come in at up 0.1% from April and rising 0.3% last month. Very low worldwide inflation levels in major economies is giving central bankers more leeway to ease their monetary policies.
The key “outside markets” today see Nymex crude oil prices solidly lower and trading just below $52.00 a barrel, on world economic growth worries. The U.S. dollar index is near steady, but is in a near-term price downtrend and there are chart clues the USDX has put in a near-term top.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the consumer price index, real earnings, the weekly DOE liquid energy stocks report and the monthly Treasury budget statement.