May 24, 2017
It has gotten to the point where traders, like most reflex-based creatures, have become accustomed to the seemingly daily Trump “bombshell” news to emerge just after 5pm from either the WaPo or NYT. So much so, in fact, that when there is none – as was the case overnight – they to complain.
Case in point, JPM’s daily market wrap, in which the bank;s Adam Crisafulli asks rhetorically “what’s happening this morning?” And answers “not a whole lot. Once again there weren’t any major Trump bombshell headlines.” Of course, the flipside is that just like the market has gotten desensitized to Trump’s tweets, so the daily barrage of “sources say” stories from the seemingly co-joined NYTWAPO is having a progressively lesser impact on either the market or Trump’s impeachment odds. And once the public habituates to the media’s “Russian connection” story, what else is there?
While we ponder that, here is JPM’s latest market wrap:
Market update – Asian markets generally ended higher while Eurozone stocks and US futures aren’t doing much more than trade flat.
What’s happening this morning? Not a whole lot. Once again there weren’t any major Trump bombshell headlines. The Moody’s d/g of China (“for the first time since 1989”) is getting a lot of attention in the media but not from investors (the SHCOMP opened lower but rallied throughout the session and closed flat). It sounds like OPEC will delay the production agreement for 9 months although there are some conflicting headlines (there are some still pushing for 3-6 or 12 months); crude is up small so far this morning. Fed’s Harker warned that another bad inflation number could lead to a pause in tightening (although he still thinks a June hike is likely); note that minutes from the 5/3 FOMC meeting will hit at 2pmET today. The UK raised its terror threat alert…