Why Does the Market Think COVID Has Peaked?
What’s in Today’s Report:
- Why Does the Market Think COVID Has Peaked?
- EIA Analysis and Oil Market Update
Futures are slightly lower following a quiet night of news as markets digest this week’s rally.
Chinese shares saw profit taking (Hang Seng down –2%) and that’s weighing on global stocks slightly, but there was no materially negative news out of China overnight.
Economic data was sparse as the German Gfk Consumer Climate slightly missed expectations (-1.2 vs. –1.0) while the Euro Zone money supply met estimates (up 8.1%).
Today we do get two economic reports including Jobless Claims (E: 340K) and revised Q2 GDP (E: 6.6%) but neither number should move markets unless they are major surprises. Instead, pre-Powell speech positioning will likely dominate markets today (Powell’s speech is tomorrow) and given stocks hit new highs this week, don’t be surprised if there’s some mild profit taking ahead of Powell’s speech tomorrow. Finally, in the bond markets, there’s a seven year Treasury auction mid-day today, and if the results are soft look for a continued rally in the 10 year yield (and an improving technical outlook for that yield).
Thank You!
I wanted to say a heartfelt, “Thank you” to all of you who sent me condolences and well wishes over the past week.
While I wish I could respond to each individual email or call, there have literally been hundreds of them, and if I took on that endeavor I’d have no time to write the Report! I believe that continuing to stay focused on the
markets and helping us to navigate this unprecedented time successfully is the best way I can show you my thanks, and you can count on me to do just that.
Again, thank you all. You have made this time easier.
