Daily Morning Report

Thursday, September 6–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight, with European shares mostly firmer and Asian stocks mostly down. U.S. stock indexes are also pointed toward slightly higher openings when the New York day session begins. Trade disputes remain in the front burner of the marketplace late this week as today is the last day for public comment on a new set of $200 billion in U.S. tariffs on China’s imports.

Gold prices are higher in early U.S. trading, possibly due in part to some safe-haven demand amid the solid losses in Bitcoin after Goldman Sachs decided not to pursue trading in that instrument.

Many world commodity market prices have been at least somewhat impacted by an emergency export tax implemented by the government of Argentina earlier this week. Officials there are trying to fend off a financial crisis that has occurred in part because the Argentine peso has plunged in value against the U.S. dollar.

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Wednesday, September 5–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. Global trade worries and the potential drag on the major economies of the world are weighing on equities this week. The U.S. and Canada are deadlocked on trade negotiations, while there are concerns the U.S. will slap more trade sanctions on China. Asian stock markets were also pressured today by weak economic data coming out of China.

Secondary currency markets, including the Argentine peso and Turkish lira, remain under pressure against the U.S. dollar. There are still worries this matter could turn into something more serious that impacts the global financial system.

In overnight news, the Euro zone composite purchasing managers index (PMI) came in at 54.4 in August versus 54.2 in July. The August reading was right in line with market expectations. A number above 50.0 suggests growth in the sector.

The key outside markets today find the U.S. dollar index slightly higher. Meantime, Nymex crude oil prices are lower on a corrective pullback after hitting a 3.5-month high on Tuesday. Also, the storm in the Gulf of Mexico did not reach hurricane status, as some initially reckoned it would.

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The calendar has turned to September and after the long U.S. holiday weekend traders and investors are likely coming back to work in a more serious mood, after a summertime of fun and family vacations. The months of September and October many times find the marketplace focusing on matters of worry. The next couple of months could well find the marketplace closely examining the secondary currency markets and the beating they have taken against the U.S. dollar this year. The greenback is starting out the U.S. trading week in strong fashion. Stay tuned!

Tuesday, September 4–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to lower overnight. U.S.
stock indexes are pointed toward mixed to firmer openings
when the New York day session begins. Global stock markets
were mostly weaker on Monday, on world trade worries after
President Trump during the weekend threatened to exclude
Canada from the just-concluded U.S.-Mexico trade deal.

The calendar has turned to September and after the long
U.S. holiday weekend traders and investors are likely
coming back to work in a more serious mood, after a
summertime of fun and family vacations. The months of
September and October many times find the marketplace
focusing on matters of worry. The next couple of months
could well find the marketplace closely examining the
secondary currency markets and the beating they have taken
against the U.S. dollar this year.

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Friday, August 31–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to lower overnight, on renewed trade tensions among the U.S. and other major world economies. U.S. stock indexes are also pointed toward weaker openings, on some more mild profit taking after hitting record highs on Wednesday.

Today is the deadline President Trump has set for Canada to come to terms with the U.S. on a trade agreement. Also, Trump said in a Bloomberg interview that the European Union “is almost as bad as China” regarding unfair trade practices with the U.S. The U.S. says it will impose another $200 billion in tariffs on China’s imports as early as next week.

Today is the last trading day of the week and of the month, which makes it an extra important trading day from a technical chart perspective. Also, the calendar turns to September on Saturday, and after the long U.S. holiday weekend traders and investors will come back to work in a more serious mood, after a summertime of fun and family vacations. The months of September and October many times find the marketplace focusing on matters of worry. The next couple of months could well find the marketplace closely examining the secondary currency markets and the beating they have taken against the U.S. dollar this year.

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A feature in the marketplace Thursday is weakness in secondary market currencies versus the U.S. dollar. The Argentine peso hit a record low against the greenback and the Turkish lira is also under pressure. The Brazilian real and Indian rupee are also solidly lower against the dollar. As the calendar turns to September next week, look for focus on secondary currencies and their countries’ problematic debt loads to become in keener focus among traders and investors. Such should continue to support gains in the U.S. dollar index, which has seen a corrective pullback this week.