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US Market Outlook 19 Oct 2018

Posted by Tim Sholl on 20-Oct-2018 00:13:53

The stock indices have been on a roller coaster ride this week with sharp weakness seen last night and a higher open projected today after Chinese market officials talked up the economy and tried to improve the sentiment. 

The US Dollar has continued to move higher with strong moves against the EUR and GBP after market concerns with the Italian budget argument with the EU and the concern with a no deal Brexit in the UK as both sides seem unable to reach agreement.

Middle Eastern concerns continue to have the potential to push Crude Oil much higher , but at the moment the large stockpiles in the US is holding prices down.

US bond yields continue to trade at 3.19% within the recent range of 3.10-3.25% on the belief of 1 more rate rise by the Fed in December , and then at least 3 more in 2019.  Some analysts believe that the Fed should pause any rate rises and let the economy build up some momentum again.

Trade talks with China seem to be on hold , but the dispute is far from over and could be a catalyst for a serious negative market move if threatened tariffs are implemented.

No economic data due out today.

Look for position squaring into the weekend to hold up the stock indices.

 

Topics: Trading, Market News, US Market Outlook