What Makes Politics a Bearish Gamechanger
What’s in Today’s Report:
- Political Update (What Makes This Drama a Bearish Gamechanger)
- Oil Outlook Updated
Futures are little changed following a quiet night as the August flash PMIs provided no big surprises.
August flash PMIs largely met expectations as the Japanese manufacturing PMI rose to 52.5 vs. previous 52.3, while the EU Composite PMI was in line at 54.4 vs. (E) 54.5.
On trade, the WSJ said odds of the 200 billion additional Chinese tariffs happening are higher than the market thinks and those tariffs remain a real risk to this rally. But, for now, the market is focused on the on going talks and as such the headline isn’t weighing too much on futures.
There are several notable economic reports today, most important of which is the August Flash Composite PMI (E: 55.6). But, we also get readings from housing via the FHFA House Price Index (E: 0.4%) and New Home Sales (E: 649K). Finally we also get weekly Jobless Claims (E: 215K).
From a trading standpoint today, any trade headlines (positive or negative) will likely move markets while BABA earnings will also be important. Earnings have quietly been strong this week and if BABA numbers are solid, it could help tech rally and that should pull markets higher.
