Monday, May 9, 2016

Economic Journal - Monday, 5/9/2016

(As of 7:15 am PST)

US markets are inching higher Monday despite disappointing news out of China overnight. Chinese stocks dropped sharply overnight after downbeat trade data painted a gloomy picture for the world’s second largest economy. Perhaps, more concerning were circulating reports that China’s central bank may begin drawing back from its aggressive monetary policy. The weak data hit the Shanghai composite index with a -2.8% drop with most of Monday’s selling pressure limited to China’s markets. Japan’s Nikkei actually posted positive gains on the day while most indexes throughout Europe were on track to finish higher. In the US, market action is a bit subdued today. The economic calendar is empty with most traders focusing on upcoming speeches from several Federal Reserve officials. Friday’s non-farm payrolls report disappointed which has some market participants speculating now on the timing of the Fed’s next rate hike move. Commodities are down today with oil prices capping gains from Friday while the US dollar strengthened. 

No comments: