What’s in Today’s Report:
- Why Stocks Hit New Highs
- Weekly Market Preview
- Weekly Economic Cheat Sheet
Futures are extending Friday’s gains following efforts by Chinese authorities to further strengthen the yuan.
The yuan strengthened to a one month high vs. the dollar as Chinese officials re-introduced the “Counter Cyclical Factor” in setting the daily value of the yuan. That “factor” is widely seen as an intent to ensure yuan strength and avoid a potential breach of 7.00. And, that support of the yuan is a potential macro positive.
The only notable econ report was German IFO Business sentiment, which beat estimates at 106.4 vs. (E) 105.4.
Today there are no notable economic reports and no important Fed speakers, so focus will remain on any trade headlines (a new trade deal with NAFTA seems imminent and that should be a mild positive on sentiment and stocks).