Daily Morning Report

Monday, July 2–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. World trade tensions remain high, which is causing some anxiety in the market place again to start the trading week and the trading quarter.

U.S. President Trump is now focusing on auto imports into the U.S. for tariffs. The already-tense trade relations between the U.S. and the other major economies of the world appear to have ratcheted up another notch.

Some political fighting in Germany, regarding that country’s immigration laws, is a bit negative for the Euro currency early this week.

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Friday, June 29–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

In overnight news, the Euro zone annual inflation rate was reported at 2.0% in June versus 1.9% in May, year-on-year.

The key “outside markets” today find the U.S. dollar index lower on a corrective pullback after hitting a 12-month high on Thursday. Meantime, Nymex crude oil prices are slightly higher and trading just below $74.00 a barrel. Oil prices Thursday hit a 3.5-year high.

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The Nymex crude oil futures market this week has surged to a 3.5-year high above $73.00 a barrel. News that the U.S. will impose a “zero tolerance” policy on countries thinking about importing sanctioned Iranian oil helped to spike prices this week. And then a surprisingly large drop in U.S. crude oil inventories reported this week added bullish fuel to the fire. Now, there is talk of not enough oil in the world marketplace–even after OPEC said it is raising its overall production level. The next upside target for the empowered crude oil bulls is major psychological resistance at $75.00 a barrel. Stay tuned!

Thursday, June 28–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Global trade war fears continue to somewhat limit buying interest in world equity markets.

In overnight news, the Indian Rupee currency hit a new all-time low against the U.S. dollar, in part due to the spike in oil prices the past week. The strong dollar against the Rupee is likely limiting Indian demand for gold (priced in U.S. dollars on the world market). India is a major gold consumer, second only to China.

The big U.S. data point of the week is today’s final estimate of first-quarter gross domestic product, which is seen coming in at up 2.2%, year-on-year.

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Wednesday, June 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were weaker overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. Lingering concerns about a global trade war among the major economies are weighing on the global equities markets.

The Chinese currency, the yuan, was guided to a six-month low today by the Chinese central bank. China’s main stock gauge, the Shanghai Composite Index, fell into bear market territory this week, as it has dropped 20% from its January high. Trade war fears have also gripped Asian investors.

The key “outside markets” today find the U.S. dollar index slightly higher. Meantime, Nymex crude oil prices are higher and trading above $71.00 a barrel. The U.S. on Tuesday said it would have “zero tolerance” for Iran exporting its oil to other countries.

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The corn and soybean markets on Monday closed at fresh for-the-move low closes and the bears have reaffirmed their strong near-term technical advantage. Wheat futures are also slumping. The grains appear to be headed still lower in the near term, unless a weather market scare quickly pops up to boost prices. Fundamentally, very good growing conditions in the U.S. Corn Belt are trumping world a supply-and-demand picture that is overall friendly toward corn and soybeans. Stay tuned!