U.S. Closed Today, Expect Action Later This Week!
As we start September, and the U.S. is closed today for Labor Day, we see a lot of interesting developments that need to be taken into consideration:
Brexit: We still think it looks like a hard Brexit, and although would be short term pain, think it will not be a major market event.
Trade Wars: we think this will drag out as China is willing to stand firm and Trump, with support from Republicans and Democrats, is making this his defining issue. (North Korea, Illegal Immigration (The Wall), Obamacare and Middle East Peace are on the back burner for now).
To be fair, his supporters are probably happy with: Tax cuts, judicial system staffing, abortion law developments, low unemployment and close to record high equity markets.
Global Central Banks: all seem to be trying to outdo each other as the fear of global recession is driving the move to ease.
17 Trillion USD of negative yielding debt globally! Looks as though this will grow higher! (Is this the new normal….?)
If Oil prices drift lower we would expect something to happen to support prices.
This Week watch for:
- UK parliament will try to counter Boris.
- U.S. (ISM data) on Tuesday, Beige Book, Wednesday: will give us update on status of health of U.S. economy
- Central Banks hold meetings: RBA, BOC, Riksbank. Look for Canada and Sweden to jump on the bandwagon of lower rates.
- ECB and Fed speakers all week.
With the U.S. markets closed today, we do not expect much activity in the markets.
For Norwegian equity traders, that like a bit of action. NAS looks to be an interesting name based on technical and fundamental drivers:
We see support at the double bottom level of 30.00 and at the trendline level of 34.50.
Resistance is at 38-39.50. A break and close above 39.50, looks like a buying opportunity for a test of the 48-50 level.
Copper has broken lower out of it’s long term range. There are large short positions in the futures markets. Perhaps telling us that a global slowdown is in the cards….