Daily Morning Report

Tuesday, October 31–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed to slightly weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. U.S. indexes are at or near record highs. Many world stock markets are also at or near record or multi-year highs.

In overnight news, the Euro zone reported its third-quarter GDP at up 0.6% from the second quarter and up 2.5%, year-on-year. The consumer price index was up 1.4% in October versus up 1.5% in September. And the Euro zone jobless rate was at 8.9% in September versus 9.0% in August. All this economic data released Tuesday falls very slightly into the camp of the European Central Bank monetary policy doves.

The Bank of Japan held its regular monetary policy meeting Tuesday and left it unchanged, as expected. The BOJ did lower its price inflation forecasts and said it would keep its very easy monetary policy in place.

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Monday, October 30–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed to slightly weaker overnight. China’s stock market was down on worries about its slumping bond markets. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. U.S. indexes on Friday hit record highs. It will be another busy week of U.S. corporate earnings, including Apple and FaceBook results.

It’s a very busy week for U.S. economic data, including the FOMC meeting that begins Tuesday and ends Wednesday afternoon with a statement. Friday brings the U.S. employment report for October. Also, the Bank of Japan and Bank of England hold monetary policy meetings this week.

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The Euro currency futures slumped to a three-month low Friday, in the wake of a dovish European Central Bank meeting held on Thursday. Prices are in a downtrend and the bears have momentum on their side, to suggest more downside price pressure next week. Stay tuned!–Jim

Friday, October 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight, on generally upbeat corporate earnings that were reported late this week. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

Gold prices are slightly lower and hit a three-week low overnight, amid a lack of risk aversion in the marketplace. Gold and silver bears have downside technical momentum.

The currency markets are still feeling the effects of Thursday’s European Central Bank monetary policy meeting, which resulted in no interest rate changes from the ECB. However, the central bank said it is reducing its monthly bond-buying program amount by half, but is extending the timeframe of the bond buying. ECB Chief Mario Draghi’s press conference sounded a dovish tone on monetary policy, which has pressured the Euro currency to a three-month low Friday morning. Meantime, the U.S. dollar index pushed to a three-month high Friday. The marketplace is a bit unsettled by the appearance of U.S. Federal Reserve monetary policy and ECB monetary policy that are diverging.

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Thursday, October 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed in quieter trading overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Stock markets and other financial markets are on hold as traders and investors are awaiting the key markets event of the week: Thursday’s European Central Bank regular monetary policy meeting. Many expect the ECB to announce more details on the winding down of its big bond-buying program.

The Euro currency could see volatile price action in the immediate aftermath of the ECB meeting, including ECB Chief Mario Draghi’s press conference.

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December corn futures have been trading in a choppy and sideways range at lower levels for weeks. This is likely “basing” that occurs when a market bottoms out and then trades sideways, before embarking on a price uptrend. I look for corn prices to trade sideways to higher into the end of the year, and even beyond that. Stay tuned!–Jim