The markets have reacted strangely to a number of events over the past two weeks.
It figures that just when it appeared as if positive equity market action and significant weakness in US Treasuries were about to confirm growth in the US economy, the US economic numbers turned sour.
Recent US economic data has shown some signs of improvement, with industrial production, housing starts and jobless claims all indicating positive progression.
While the markets might not believe that the oil producers’ deal to reduce output will be fulfilled, it does appear that US crude oil inventories are tightening and global demand is creeping higher.
The answer to the US hike/no hike question was not only “no-hike,” it was also combined with a much less hawkish forward view and suggestions that the US economy had more room to run.
This weekly feature examines chart formations, along with technical indicators, of two to three commodity markets. Breakouts of these formations may lead to trading recommendations published by the Trade Spotlight advisory service.
For today’s trading session, US equity markets look poised for a corrective rebound over the near term, but outside market volatility could delay.
For today’s trading session, slowing economic growth concerns, a measure stress seen in U.S. Treasury markets, Ebola fears, mixed corporate earnings flow and disinflation fears keep the bear camp in control.
The action in equities over the last month has been impressive, but it is even more impressive when one considers that the gains were forged in the wake of generally disappointing global economic news flow and a persistent escalation of tensions between Russia and Ukraine.
After China’s manufacturing data came back showing better than expected results, copper futures rose by 1 percent, the most in three weeks.