Weekly Market Outlook
What’s in Today’s Report:
- Weekly Market Outlook
Futures are marginally higher this morning and global markets were mostly flat overnight after a very quiet and uneventful holiday weekend as focus turns to data this week.
Economically, Eurozone PPI was solid at 4.0% YoY, but most of the rise was due to energy prices and core inflation levels remain slow but steady in the EU.
Energy prices are notably higher this morning due to Tropical Storm Gordon’s near term threat to Gulf oil operations.
Today, focus will be on economic data early: ISM Manufacturing Index (E: 57.6) and Construction Spending (E: 0.4%) while there are no Fed speakers scheduled to speak.
Beyond data, investors will largely be focused on trade relations this week, more so with China but negotiations with Canada will also be important.
The dollar has been a good, inverse indicator for investor sentiment towards trade and it is handily higher this morning. If the dollar strength continues, it will be hard for stocks to continue last week’s gains this week.
