Daily Morning Report

Thursday, May 24–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Buying interest in world stock markets was squelched a bit when U.S. President Trump on Wednesday threatened more tariffs on foreign autos and auto parts.

In overnight news, the European Central Bank has warned that its countries’ bond markets would suffer if the bloc continues to show economic weakness. After an extended period of calm, concerns about the viability of the European Union have arisen again after anti-establishment politicians in Italy are preparing to form a coalition government.

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Wednesday, May 23–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The world’s traders and investors are not so upbeat today, following comments from U.S. President Donald Trump on Tuesday that suggested the U.S. and China are still far apart on a trade dispute resolution. Also, the NAFTA trade talks between the U.S., Mexico and Canada have broken down. Furthermore, Trump said his meeting with North Korea’s leader Kim Jong Un may not take place. Political uncertainty in Italy, as a new government tries to form, is also added to the mix of more anxiety in the world marketplace.

There was also some downbeat economic news coming out of the European Union Wednesday, as business activity in the bloc slowed in May for the fourth straight month.

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The grain markets have come to life in recent weeks, showing more volatility. The bulls are excited about a summer growing season in the U.S. Corn Belt that some weather forecasters are predicting will be hotter and drier than normal. More years than not during the planting and growing season in the Corn Belt, at least one weather scare occurs. Keep reading my daily reports for those early clues on developing weather markets and their likely intensity. See on the daily bar chart for December corn futures that prices are already trending higher and on Monday set a new 10-month high. Bulls are in technical command in corn, to suggest still more price gains in the near term, even without the help of any imminent weather scare. Stay tuned!

Tuesday, May 22–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight, with Asian stocks down and European stock indexes modestly up. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Keener investor risk appetite in the marketplace recently is driving many world stock indexes to multi-month highs. The apparent easing of U.S.-China trade tensions has traders and investors in upbeat moods early this week.

The key “outside markets” today find Nymex crude oil prices up and at a new 3.5-year high and trading above $72.00 a barrel. Brent crude is near $80.00 a barrel as the U.S. is set to once again sanction Iran, which would likely reduce that country’s oil sales on the world market.

Meantime, the U.S. dollar index is lower on a corrective pullback from recent good gains that saw prices hit a six-month high on Monday.

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Monday, May 21–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The world marketplace has been assuaged by news the U.S. and China have agreed to set aside their trade dispute and not slap tariffs on each other’s goods, for now.

In other news, European traders and investors are still nervous regarding the potential for Italy’s anti-establishment parties to form a government, and then pulling out of the European Union. Such has caused the yield spread between German and Italian government bonds to widen substantially.

The benchmark 10-year U.S. Treasury note yield is trading around 3.07% on Monday morning, on some increasing concerns about rising inflationary pressures.

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The U.S. dollar index is a basket of six major world currencies weighted against the greenback in one composite price. See on the daily bar chart the USDX continues to push higher and has this week hit a five-month high. The appreciating dollar is impacting secondary currencies significantly, in that those currencies are losing purchasing power on world markets, where many products are priced in U.S. dollars. The Turkish lira, the Brazilian real and the Chinese yuan currencies have all experienced serious depreciation against the greenback. Central bankers are starting to take note of the secondary currency markets, and are becoming worried about dislocations in the secondary currency markets spreading into the major currencies–a contagion. Stay tuned!