Dow dropped 26 (off session lows), decliners over advancers 3-2 & NAZ finished up 9. The MLP index climbed 1+ to the 256s & the REIT index fell 2. Junk bond funds inched higher & Treasuries remained weak. Oil slid back pennies to 59 & gold added 5 to 1207 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Trade talks are in final stages, but there is still fear China may walk back concessions:
The Trump administration is granting Iraq a renewed 90-day waiver exempting it from US sanctions on Iran, a senior State Department said. The waiver, last issued in Dec & which expired on Mar 19, will allow Iraq to continue buying electricity from its neighbor even as the White House pledges a maximum pressure campaign against Tehran. "While this waiver is intended to help Iraq mitigate energy shortages, we continue to discuss our Iran-related sanctions with our partners in Iraq," the official said. Despite being OPEC's 2nd-largest producer of oil, Iraq is dependent on Iranian natural gas plants for up to 45% of its electricity. Without continued sanctions exemptions, Iraq could lose around 1/3 of its power overnight. Last summer, Iraq failed to pay its electricity bill to Iran on time. This prompted Tehran to cut the power off & triggered widespread protests in the country's south, particularly in poverty-stricken Basra, where gov buildings and the consulates of Iran & the US were attacked.
Despite pressure campaign, Trump grants Iraq a new 90-day sanctions waiver to buy Iranian energy
Gold futures ended higher, finishing above $1300 an ounce for a 3rd straight session, as traders looked to a 2-day Federal Reserve meeting that’s expected to see policy makers maintain a dovish stance. Apr gold rose $5 (0.4%) to settle at $1306 an ounce, the highest finish for a most-active contract since the month-to-date high on Mar 13. A weaker $ can be seen as supportive for commodities priced in the unit by making them cheaper to users of other currencies. The Fed, which began its 2-day meeting, is widely expected to maintain the tone it adopted in Jan, when it abruptly put its rate-hike plan on pause & took a wait-&-see approach to future rate moves. Traders are also monitoring geopolitical developments, including the UK's efforts to reach a deal on leaving the EU. Prime Minister Theresa May's plan to bring her twice-rejected proposed agreement governing the UK's future relationship with the EU to another parliamentary vote this week ran into a parliamentary roadblock yesterday, leading to volatile trade in the British pound
Oil futures held ground near multimonth highs with major global producers outside the US expected to continue to keep a lid on output. The US benchmark, however, eased back to settle a few cents lower after finishing Mon at its highest since Nov as OPEC & its allies looked set to continue their crude production cuts until Jun. Apr West Texas Intermediate crude fell by 6¢ to settle at $59.03 a barrel after settling at $59.09 yesterday, the highest finish since Nov 12. The Apr WTI contract expires at the end of tomorrow's session.
Buyers were active in the AM. But they went home in the PM & stocks took a big tumble. The Dow sold off 250 from its high on confusion over where the talks on trade stood. However there was buying into the close. Reports overnight should bring more clarity to that important situation. The FOMC meeting is not expected to bring any surprises tomorrow. The comments about the future of interest rates will continue with talk about their "patient attitude." With today's decline, the Dow is back under 26K. The bulls will have to try much harder to bring the Dow up to a new record above 26.8K after it has been stuck in.the mud for several months.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
White HouseCouncil of Economic Advisers Chairman Kevin Hassett said he’s “optimistic” about auto production in 2019. “There’s so much business coming back to the U.S. and so much auto business,” he said. His comments come on the heels of Pres Trump
ratcheting up criticisms of General Motors (GM) this weekend over the closure
of its Lordstown, Ohio, plant. In
a series of tweets Trump ripped GM & urged its CEO, Mary Barra, &
the UAW Union to "Bring jobs home!" & reopen the plant quickly. “We
now have the best Economy in the World, the envy of all. Get that big,
beautiful plant in Ohio open now,” Trump Tweeted yesterday. Last
year, the automaker announced plans to slash 15% of its salaried
workforce & halt production at 5 plants in Ohio, Michigan,
Maryland & Ontario. As a result, the Lordstown plant shut down in
Mar & about 1500 workers were laid off. However, in Hassett's opinion the manufacturer's issue is peculiar. “We
are getting news from foreign automakers about plant expansions,” he
said. “And new plants that they are building here in the U.S. that if a
specific manufacturer is having trouble then I think that that’s
an idiosyncratic thing.”
Hassett on GM: Manufacturer trouble is an 'idiosyncratic thing'
There were multiple reports about trade talks between US & China, which sent traders scrambling to decipher. Some US officials fear that China is
reneging on certain trade concessions, reported first this PM. Leakers said that they are concerned China's pushback & stalling discussions could
threaten Pres Trump's chance at a boost ahead of his 2020
reelection bid. Others said that
Beijing negotiators have shifted their stance because they haven't
received convincing assurances from the US that US tariffs imposed
on Chinese exports would be lifted. The report knocked stocks to their lows of the day, nearly sending the Dow into negative territory on the session. The report did note
that some US officials believe China's moves were normal. Equities quickly
rebounded, however, after Dow Jones reported that trade talks are in the
final stages. It also reported that US Trade Representative Robert
Lighthizer & Treasury Secretary Steve Mnuchin will fly to Beijing the
week of Mar 25 & China's Vice Premier Liu will travel to DC the week after. Trump said last week he was in no rush to complete a trade pact with China & doubled down that any agreement include intellectual property rule enforcement, a recurring hitch for the talks. Trump & Chinese Pres Xi Jinping had been expected to hold a summit at the Trump's Mar-a-Lago property in Florida later this month. Last month, the administration delayed an additional
round of tariffs on Chinese goods. Secretary of State Mike Pompeo said
earlier this month the US & China were "on the cusp" of a possible
deal.
Trade talks are in final stages, but there is still fear China may walk back concessions:
The Trump administration is granting Iraq a renewed 90-day waiver exempting it from US sanctions on Iran, a senior State Department said. The waiver, last issued in Dec & which expired on Mar 19, will allow Iraq to continue buying electricity from its neighbor even as the White House pledges a maximum pressure campaign against Tehran. "While this waiver is intended to help Iraq mitigate energy shortages, we continue to discuss our Iran-related sanctions with our partners in Iraq," the official said. Despite being OPEC's 2nd-largest producer of oil, Iraq is dependent on Iranian natural gas plants for up to 45% of its electricity. Without continued sanctions exemptions, Iraq could lose around 1/3 of its power overnight. Last summer, Iraq failed to pay its electricity bill to Iran on time. This prompted Tehran to cut the power off & triggered widespread protests in the country's south, particularly in poverty-stricken Basra, where gov buildings and the consulates of Iran & the US were attacked.
Despite pressure campaign, Trump grants Iraq a new 90-day sanctions waiver to buy Iranian energy
Gold futures ended higher, finishing above $1300 an ounce for a 3rd straight session, as traders looked to a 2-day Federal Reserve meeting that’s expected to see policy makers maintain a dovish stance. Apr gold rose $5 (0.4%) to settle at $1306 an ounce, the highest finish for a most-active contract since the month-to-date high on Mar 13. A weaker $ can be seen as supportive for commodities priced in the unit by making them cheaper to users of other currencies. The Fed, which began its 2-day meeting, is widely expected to maintain the tone it adopted in Jan, when it abruptly put its rate-hike plan on pause & took a wait-&-see approach to future rate moves. Traders are also monitoring geopolitical developments, including the UK's efforts to reach a deal on leaving the EU. Prime Minister Theresa May's plan to bring her twice-rejected proposed agreement governing the UK's future relationship with the EU to another parliamentary vote this week ran into a parliamentary roadblock yesterday, leading to volatile trade in the British pound
Gold ends higher as traders expect Fed to maintain dovish stance
Oil futures held ground near multimonth highs with major global producers outside the US expected to continue to keep a lid on output. The US benchmark, however, eased back to settle a few cents lower after finishing Mon at its highest since Nov as OPEC & its allies looked set to continue their crude production cuts until Jun. Apr West Texas Intermediate crude fell by 6¢ to settle at $59.03 a barrel after settling at $59.09 yesterday, the highest finish since Nov 12. The Apr WTI contract expires at the end of tomorrow's session.
Oil prices hold near multimonth highs as OPEC supply appears in check
Buyers were active in the AM. But they went home in the PM & stocks took a big tumble. The Dow sold off 250 from its high on confusion over where the talks on trade stood. However there was buying into the close. Reports overnight should bring more clarity to that important situation. The FOMC meeting is not expected to bring any surprises tomorrow. The comments about the future of interest rates will continue with talk about their "patient attitude." With today's decline, the Dow is back under 26K. The bulls will have to try much harder to bring the Dow up to a new record above 26.8K after it has been stuck in.the mud for several months.
Dow Jones Industrials
No comments:
Post a Comment