Daily Morning Report

Friday, September 7–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed but mostly weaker overnight. U.S. stock indexes are also pointed toward slightly lower openings when the New York day session begins.

Traders and investors are awaiting what is arguably the most important U.S. economic report of the month, due out this morning: the Labor Department’s employment situation report for August. The key non-farm payrolls component is expected to be up around 190,000. Thursday’s ADP national employment report for August came in at up 163,000 jobs, which was slightly below market expectations and hints the more important Labor non-farm jobs number today may come in light.

Emerging stock markets have slipped into bear territory, according to a closely watched index—the MSCI Emerging Markets Index. The index has dropped 20% from its recent high. There are still lingering worries about eroding emerging markets and secondary currencies creating a contagion to impact larger currencies and financial markets.

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The grain market bears are in near-term technical control as we head into the U.S. corn and soybean harvest season. It will be tough for prices to mount decent rallies in the coming weeks, amid the harvesting of what are expected to be very large corn and soybean crops. About the best the grain market bulls can hope for in the next couple months will be sideways price action. Stay tuned!

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.

Continue Reading