US Stock markets are closed on Monday in observance of Memorial Day. DTG will resume posting Tuesday, May 30, 2017. Enjoy the long weekend!
Oil prices are down overnight as OPEC and non-OPEC members agreed to extend production levels for 9 more months, however they did not agree to cut production further. In lighter than normal European trading due to the Ascension Day holiday, the oil move has put a damper on the bullish reaction to yesterday’s Fed minutes which continued into the Asian sessions and took the ES to a new all-time high. The minutes showed that the pace of additional rate hikes is up for debate. Today’s economic data focus is Claims and Goods Trade @ 8:30am EST. Fed Governor Brainard speaks @ 10:00am EST. Now that the ES is at new highs, the bulls may take a shot at seeing how far they can run. Best guess is that after an initial move up, the bulls will fall into grinding mode… Size bias is up into the US session open.
Moody’s lowered the credit rating for China one notch for the first time since 1989 over concerns of slowing growth and rising debt. However, the move was anticipated as Fitch had already made the same move and the markets kind of shrugged off the news. The U.K. has raised their threat level from severe to the highest level critical as links after the Manchester concert bombing. On the economic calendar, we have HPI @ 9:00am EST, Existing Home Sales @ 10:00am EST, and Crude Inventories @ 10:30am EST. However, today’s focus will be on monetary policy as ECB’s Draghi speaks @ 8:00am EST and FOMC Meeting Minutes are released @ 2:00pm EST. Volatility continues to be muted to the upside until the bulls find a reason to explore new all-time highs. No Size bias as overnight volume was mixed but starting to turn bearish.