Daily Morning Report

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!

Thursday, August 16–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. U.S. stock indexes are pointed toward higher openings when the New York day session begins.

There is less risk aversion in the world marketplace today, partly on news the U.S. and China are set to hold trade talks later this month—the first negotiations in two months. However, the threat of an emerging markets economic and currency crisis is still on the minds of many traders and investors, and this matter will not just disappear. The Turkish lira, which has garnered the most scrutiny in recent weeks, is trading higher versus the U.S. dollar today.

The precious metals markets were hit especially 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.

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Wednesday, August 15–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

U.S.-Turkey relations have further deteriorated as Turkey has slapped economic sanctions on the U.S. The Turkish lira has stabilized at mid-week, but traders and investors worldwide are still jittery that a secondary currency contagion could still develop as the U.S. dollar continues to appreciate against most world currencies.

The economic highlight of the day for the U.S. is retail sales data for July, which is expected to come in at up just 0.1%.

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The Nymex crude oil futures market on Monday hit a six-week low and a downtrend line is in place on the daily bar chart. The bulls have lost momentum and the charts have become less bullish, suggesting a near-term market top has occurred and that prices will trade sideways at best in the near term, if not sideways to lower. Stay tuned!