Stocks in the U.S. looking for direction / move sideways. Sentiment stabilizes on a quiet day at the end of another tumultuous week, much of which revolved around dramatic moves in currencies, with the USD hitting another 6-month high against its peers, and the gap in economic growth (and prospects) between the US and the rest of the world widening.
Asian markets closed lower today as optimism that Beijing's massive stimulus measures will boost economic growth fades. Recent economic data from China and also from Europe point to a worsening of the economic downturn. Market sentiment and consumer confidence in China and Europe remain at rock bottom levels. European stocks are near the 200-day moving average, which provided short-term technical support, but there is little room for optimism.
The broad European Stoxx 600 Index fell slightly today (it is currently almost flat) and is on track for its eighth day of losses – the longest losing streak since 2016.
Another question is how long the USD's uptrend can last. Some dovish comments from Fed Bank of New York President John Williams provided some relief in the USD, but continued expectations that the US economy will continue to significantly outperform Europe and China will keep the USD attractive.
We expect mostly sideways movement in New York – with slight recovery attempt – especially in tech. However, there is little reason to expect that returning confidence and a recovery (especially in Europe) will not be met with more profit taking again.
European gas prices are up as much as 11% today, while oil prices remain near 2023 highs. LNG workers at a key Chevron site in Australia began partial strikes on Friday after talks failed to produce an agreement – showing that the list of risk factors – particularly for Europe – is long…
👁 ROB'S MARKET OVERVIEW:
September 08, 2023
🇺🇸 US Markets ➡️/↗️ (mostly sideways today – likely some dip buying in tech)
Cyclical Stocks ➡️
Tech/Growth Stocks ➡️/↗️ (slight dip-buying)
Financial Stocks ➡️/↗️
Defensive Stocks ➡️/↗️
Energy Stocks ➡️/↗️
Materials Stocks ➡️/↘️
💱 Forex
AUD, CAD ➡️/↗️ (slight recovery gains, benefiting from higher commodity prices / temporary stabilized markets)
USD ↘️/➡️/↗️ (USD remains in demand)
GBP, JPY, CHF ➡️
EUR ➡️/↘️
⚒ Commodity Markets ↕️/↗️
Oil prices ➡️/↗️ (oil remains bullish, tailwinds from higher natural gas / LNG prices)
Natural Gas prices ↗️
Metal prices ↘️
Precious Metal prices ➡️/↗️ (more safe haven demand, can move slightly higher on stabilizing USD & yields)
⚡️Cryptos ➡️ (remain unattractive)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
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