Morning Minutes 12/13/2018 and Webinar Today

Europe In Focus as Global Stocks Rebound and Commodity Recovery Broadens

December 13, 2018
8:45 am EDT

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

Stocks continue to climb up off of a series of successful support tests staged earlier this week. Overnight, the Hang Seng rallied 1.3% and the Nikkei gained 1.0% and hopes continue to grow that the US and China could eventually reach some kind of trade deal. That could take a while though and there are still likely to be bumps on the way.

European markets are mixed with the FTSE down 0.2% and the Dax up 0.1%. The ECB announced the long-expected end of its asset purchase program, which could have been seen as a vote of confidence in the European economy except that this was offset by the news that interest rates will remain steady through the summer at least and that cash from maturing bonds will still be reinvested. I guess this is the most one could really expect with the potential that all of the political strife and uncertainty gripping the continent could have a negative spillover impact on the economy. UK PM Theresa May won a Conservative Party vote of confidence in her leadership but she’s likely to run into a brick wall when she goes to an EU Summit today looking for changes in her Brexit deal to get it through Parliament. The possibility of a No-Deal Brexit that could cause widespread economic disruption on both sides of the Channel remains a concern. Meanwhile, France is holding a non-confidence vote on President Macron’s government today amid ongoing protests over taxes.

In North America, upward momentum continues to build. Dow Futures are up 34 points so far, pointing toward a positive open that could build on yesterday’s 157-point advance. In commodity action, crude oil has dropped back 1.0% but WTI continues to hold above $50.00/bbl Broader commodity market action has been positive so far with Natural Gas up 3.25%, Copper up 1.25% and Wheat up 1.00%.

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