Tuesday, November 5–Jim Wyckoff’s Morning Markets Report
Asian and European stock indexes were mostly up in trading overnight. U.S. stock indexes are pointed toward modest gains and new all-time highs when the New York day session begins.
Risk sentiment worldwide remains upbeat amid ideas the U.S. and China are very close to a partial trade deal, called “Phase 1.” There are reports China is now pushing the U.S. to roll back some more tariffs on Chinese imports, with the U.S. possibly agreeing to such to get the deal sealed.
In overnight news, the Euro zone September producer price index was reported up 0.1% from August and down 1.2%, year-on-year. The report is a reminder that very low inflation in most of the major world economies is still a problem.
The OPEC oil cartel has issued a report saying booming U.S. shale oil production will likely keep the cartel constraining its own oil output for at least the next five years. I have covered the energy markets for 35 years and the U.S. shale oil production technology coming on line about 10 years ago has been the most fundamentally game-changing development of all the markets I have followed the past three decades.
The key “outside markets” today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $57.00 a barrel.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the international trade report, the U.S. services PMI, the ISN non-manufacturing report, and the IBD/TIPP economic optimism index.