The North Korean situation flared up again with fresh threats from their leader, and while the markets have taken these types of threats in stride before, there will be some anxiety that affects risk sentiment.
Wheat
Markets Exhausted, Significant Lows in Grains
Global markets have not regained a “risk on” tone, but they are showing signs of looking beyond the turbulent events of the past few weeks.
Volatile Week Ahead, Growth in the Long Run
It could be a very volatile week ahead as the market deals with factors that could slow US economic growth in the short term.
Global Growth Outlook Positive; Commodity Bottom!
Commodity markets appear to have put in a significant low on June 22nd, right into the crude oil low and also in line with the first day of summer.
Will Economic Sentiment Improve?
Given the widespread deflationary liquidation wave of late and a lack of upbeat scheduled data flows, it is difficult to call for an end to the weakness in industrial commodity prices.
Disappointing US Activity, Slide in Commodities
In retrospect, the recent sharp declines in equity prices and significant pressure on industrial commodities were justified by disappointing US scheduled data and the Fed’s move to notch interest rates upward.
Potential For a June Rate Hike Rekindles
Despite the very disappointing US nonfarm payroll report for the month of May, the US and global economies continue to recover, albeit at a slow pace.
Mixed US Numbers Downplays Prospect of June US Rate Hike
While the markets always present a wide range of potentially impactful issues, the current list seems to be unusually broad.
Market Sentiment is Colliding with Reality
The markets have reacted strangely to a number of events over the past two weeks.
Markets Continue to Deny Fundamentals, but the Global Economy is Growing!
Despite the Treasury market’s strange reaction to the much better than expected US nonfarm payroll result for April, the overall outlook for the US and global economy was improved markedly by that data released last week.