We can consider the previous week very lucrative for the U.S. equities and futures.., Standard and Poor 500 marked high levels after high levels in combine with the others Indices like Dow Jones . . the Dollar index strengthen after good economic data and this make the commodity sector went south of heaven . .
– Crude prices slip as market pessimism over supply persists, the steady growth in the number of active oil rigs digging for oil in the U.S. is spurring concerns of more shale output in the future. Industry group Baker Hughes reported last week that the U.S. oil-rig count rose for the fourth-straight week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at $44.16 a barrel, down $0.02 in the Globex electronic session. September Brent crude London’s ICE Futures exchange fell $0.03 to $45.66 a barrel. Oil prices have been under the $50-a-barrel threshold for weeks thanks to multiple bearish factors.
In addition to weekly oil inventories data from the U.S. energy department on Wednesday, investors this week will be keeping a close eye on two major central banks — the Bank of Japan and the U.S. Federal Reserve — for their decisions on interest rates and outlooks on their respective countries.
The U.S. Federal Open Market Committee will meet on July 26 to 27, followed by the Bank of Japan’s policy meeting on July 28 to 29.
– Investors turned to U.S. assets amid a reduction in bets on how quickly central-bank intervention in Asia and Europe would come. Expectations for lower rates or additional bond buying had sparked a three-week rally in global equities that added more than $4.5 trillion in value. On Friday euro-area officials familiar with the matter indicated the region’s central bank sees no urgent need to adjust or expand a bond-buying program in September, while Japan’s policy makers were said to be concerned about using unusual easing. It’s been a bit of a mixed bag, but you have to say that the earnings reports have been positive overall . .
The S&P 500 rose 0.5 percent to 2,174.85 in New York, putting its five-day advance at 0.6 percent. The rise capped the longest run of weekly gains since March. The index’s valuations rose above 20 last week for the first time since 2009.
The rapid, whipsaw action in stocks from sharp losses fueled by Brexit to the thin-oxygen levels of record altitudes has left a nagging sense of doubt for many investors. Indeed, according to a recent Bank of America Merrill Lynch monthly fund manager survey, investors are setting aside the highest proportion of their holdings in cash since 2001—about 5.8%.
Even those who don’t see a seismic move down anticipate that a pivot lower is appropriate.
J. Mason ♦