What’s going on in the world…
Market opens lower as the global selloff continues. S&P 2800 got taken out at the open. This is a significant psychological level. Stocks are for sale around the world, while money keeps flowing into bonds. Interest rates are the lowest they’ve been in nearly two years. The 10-Year Treasury yield is down to 2.2%. Rates are negative overseas. The yield curve inversion keeps getting worse. Tensions between the US and China keep rising with expectations of a trade deal slipping away. Both sides are digging in their heels and are playing a game of chicken. The G20 meeting next month is a natural setting for the two Presidents to meet. But a lot of work, negotiation and concession is still necessary before any agreement can be made. China suggested it is willing to use its leverage, and it finds it with its near monopoly in Rare earth. China plays the long game and have made it clear they are prepared to be patient. Crude Oil is weak again with WTI accelerating lower, below $60. The Dollar is higher while Gold is catching a bid. Hitting the headlines just before I hit send is news Robert Mueller will be making a statement today. Keep those belts buckled.
Have a great morning,
Mike Frazier
