“We’ve consistently repeated that the rally in stocks to essentially new highs has been driven by hopes of Fed rate cuts and a U.S.-China trade truce…” said Tom Essaye, founder of The Sevens Report. Click here to read the full article.
What’s in Today’s Report:
Futures are modestly higher following a generally quiet weekend as markets look ahead to the Trump/Xi meeting at the G-20 later this week.
News from the weekend focused on geo-political tensions between the U.S. and Iran but for now that situation isn’t impacting markets outside of oil (which is higher again).
The only notable economic report was German Ifo Business Expectations and it slightly missed estimates (94.2 vs. (E) 94.6).
There are no economic reports today nor are there any Fed speakers, so markets will be driven by any headlines on U.S./China trade (leaks about the upcoming Trump/Xi meeting) or Iran/U.S. tensions (the U.S. is anticipated to announce major new sanctions against Iran).