US markets look to open today on a positive note with stock indices higher in Europe and markets hopeful that the trade tensions may be reduced with new talks between China and the US. Problems with Emerging markets continue to cause concerns with Turkey still causing some weakness in European banks that have a lending exposure , and now the focus turning to Venezuela that has been sinking for months. Over the weekend the government has devalued the currency by 95% and instigated a large increase in the minimum wage which is not popular with the local business.
In the FX markets the US dollar still remains strong but we do seem to be consolidating at these levels. Bond yields have been stuck in a range for past 3 weeks and even though market still thinks 2 more rate rises in the US is possible , it will be very data dependent. Latest prices are EUR at 1.1422 down 15 , the GBP is at 1.2762 up 11 , and JPY is at 110.47 stronger by 4. The US dollar index is at 96.09 up 9 , while Gold is at 1186.20 up 2.20.
Stock indices look positive with Dow at 25717 up 50 , the S&P500 at 2854 up 4 , the Nasdaq 100 is at 7391 up 14.
Bond yields are steady with US10 at 2.86%.
No economic data due out today with market waiting on the Central Bank symposium at Jacksons Hole later this week for any discussion of pausing the interest rate cycle.