Gold Update: What It Needs to Keep Rallying
What’s in Today’s Report:
- ECB Meeting Takeaways: Why We Still Prefer Broad U.S. Stock Exposure Over International Right Now
- Gold Update: What It Needs to Keep Rallying
Futures are sharply lower mostly on continuation from yesterday’s selling as markets digest the recent rally, although AAPL & AMZN earnings were mildly disappointing.
Economic data was soft again as the Japanese Manufacturing PMI (41.9 vs. (E) 44.8) and British manufacturing PMI (32.6 vs. (E) 32.9) both missed estimates.
On earnings, AAPL & AMZN numbers weren’t bad, but AAPL didn’t provide updated guidance while AMZN cited a significant coronavirus expense increase in Q2.
Today the key report will be the ISM Manufacturing Index (E: 39.0) and the key here is that it isn’t too much worse than estimates (if it is, that’ll increase concern about how deep the economic hole has become). Additionally, today is “May Day” and many of the world’s markets (EU, Hong Kong, China) are closed, so there will be a lack of volume/liquidity and that could exacerbate today’s volatility and any declines.