Daily Morning Report

Tuesday, June 12–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

The world marketplace is taking in stride the apparent positive conclusion of the summit meeting on denuclearization between U.S. President Donald Trump and North Korean President Kim Jong Un. World stock markets were mixed to weaker after the meeting, with U.S. stock indexes set to open slightly lower when the New York day session begins.

Gold, U.S. Treasuries and the world currency markets were showing muted reactions to the summit’s conclusion—probably because traders and investors realize there are going to be lots of twists and turns on the road to complete denuclearization of North Korea, but still reckon this is a good start.

Attention will quickly turn to the Federal Reserve’s Open Market Committee (FOMC) meeting that begins today and ends Wednesday afternoon with a statement. It is widely expected the FOMC will raise U.S. interest rates by 0.25% at this meeting. Fed Chair Jerome Powell will have a press conference following the meeting.

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Monday, June 11–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

European markets were boosted in part on notions the political situation in Italy has calmed down from earlier tensions, which suggests the Italian government could be friendlier toward the European Union.

This weekend’s Group of Seven meeting in Canada between the major industrialized countries of the world ended in discord, with the U.S. refusing to sign a G-7 statement. Trade and import tariffs were the major topic of discussion among the finance ministers of the major world economies. The trade-related spat between the U.S. and Canada that is becoming more vitriolic underscores the fading hopes the U.S. and its major trading partners can avoid an escalation in trade sanctions against each other.

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The corn and soybean markets this week took major downside price hits, with serious near-term technical damage inflicted. This sets the stage for more price pressure for at least the next couple weeks, heading into the pivotal early-July timeframe when price trends in the grains can be reversed, or existing trends can accelerate. The corn and bean markets’ bullish savior could be hot and dry weather forecasts for the U.S. Corn Belt. But right now, the weather forecasts are not deemed bullish. However, forecasts can change quickly in the summertime. Stay tuned!

Friday, June 8–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.

There is some uncertainty and even some anxiety among traders and investors heading into this weekend’s Group of Seven meeting in Canada between the major industrialized countries of the world. Trade and import tariffs will likely be the major topic of discussion among the finance ministers of the major world economies. The tone among the world leaders attending the meeting is not good, regarding resolving trade the disputes.

And then early next week President Trump is scheduled to meet with North Korean President Kim Jong Un. The results of this meeting are very much up in the air and hard for the markets to gauge. This adds another element of uncertainty heading into the weekend, to put the marketplace is a more risk-averse mood today.

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Thursday, June 7–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. stock indexes are at contract or multi-month highs amid keener risk appetites among traders and investors in the world marketplace.

In overnight news, the Euro zone reported its gross domestic product (GDP) rose at an annual rate of 1.5% in the first quarter of this year. That is well down from the 2.8% growth rate seen in the bloc in the fourth quarter of last year.

Traders are looking ahead to this weekend’s Group of Seven meeting between the major industrialized countries of the world. Trade and import tariffs will likely be the major topic of discussion among the finance ministers of the major world economies.

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The Nymex crude oil futures market daily bar chart shows price uptrend lines have recently been soundly negated, which has produced serious near-term technical damage to suggest a market top is in place. I look for more sideways to lower trading action in the oil market in the near term. Not only have the technicals turned more bearish for oil, the world supply-and-demand situation is also tilted in favor of the bearish camp. Stay tuned!