Daily Morning Report

Wednesday, August 22–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

U.S. and world stock markets were mixed to mostly weaker overnight. President Donald Trump is in some hot water, legally, as two of his close associates are likely going to jail. This has added a bit of uncertainty to the world marketplace at mid-week. There is talk Trump could pardon those associates, or that he could be impeached. And the mid-term congressional elections are right around the corner.

Gold prices are firmer and seeing a bit of safe-haven demand on the Trump worries.

Also in focus today is the early-afternoon release of the minutes of the last meeting of the Federal Reserve’s Open Market Committee (FOMC). Past FOMC minutes releases have moved markets, although no big revelations are expected in today’s report.

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Tuesday, August 21–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

The feature in the marketplace today is a weaker U.S. dollar in the wake of remarks from President Trump to Reuters criticizing the Federal Reserve for raising interest rates. Trump reportedly said Fed Chairman Jay Powell is not doing the job the president had hoped he’d do. The Fed has raised U.S. interest rates twice this year and is likely to raise them at least one more time this year.

U.S. and world stock markets were mostly firmer overnight and brushed off Trump’s comments on the Fed.

A Chinese central bank official has reportedly said China will not use its currency, the yuan, to gain leverage in its trade war with the U.S. The yuan has dropped around 10% against the U.S. dollar since April. The U.S. is set to slap more tariffs on China’s imported products this week, despite the world’s two largest economies holding low-level trade talks later this month.

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The crude oil futures market is in a downtrend on the daily bar chart and prices late last week hit a seven-week low. With the downtrend in place the path of least resistance for prices will remain sideway to lower until that downtrend is negated. See the support and resistance lines on the chart. Stay tuned!

Monday, August 20–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

The foreign exchange market has stabilized following recent turmoil that was mainly the fault of a severely depreciated Turkish lira. The Chinese yuan has climbed today on reports Chinese economic officials want to stimulate spending on infrastructure projects. Metals markets are in rally mode to start the trading week, on optimism coming from China—a major metals importer.

A highlight of the trading week will be the annual meeting of world central bankers in Jackson Hole, Wyoming, late this week. The Fed’s FOMC minutes are also due out Wednesday afternoon.

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Friday, August 17–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.

The world currency markets have calmed down a bit the past couple days, as the U.S. dollar index has backed down from its 14-month high scored on Wednesday. The closely watched Turkish lira currency is weaker again today despite the Turkish government taking steps to prop up the currency and the economy. U.S. Treasury Secretary Mnuchin said Turkey faces more sanctions if a U.S. citizen is not released by Turkish authorities.

In overnight news, the Euro zone consumer price index was reported down 0.3% in July from June, and up 2.1%, year-on-year. The numbers were close to in line with market expectations.

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The precious metals markets were hit hard Wednesday, on worries about a global economic slowdown that could be caused by a secondary currency crisis. Gold hit a 1.5-year low, silver a two-year low, platinum a 14-year low and palladium scored a 13-month low. Supposedly safe-haven gold and silver markets have not seen any significant demand surface due to the potential for a currency market contagion. Stay tuned!