OptionEye - Macro Outlook - Aug 26th
The Chinese market was lower again last night as the US stock market melted in the afternoon. We went from being over 400 higher in the Dow to finishing more than 200 lower. A pretty historic move intraday. This morning we are going to open higher as the S & P future is trading about 25 points to the positive in early trade.
Overnight corn is up 2, beans down 5 and wheat up 3. Very quiet day yesterday.
The 10 year yield moved out to 2.08% this morning as the dollar is weaker at 94.30 down .22.
The oil market has been the driver as of late and this morning is relatively quiet up .09 cents to $39.40. Gold is lower again at $1134.29 down $6.10.
The Chinese stock market really needs close higher tonight or we are on the verge of more big losses. The recent rate cuts and currency devaluations are a tacit admission of how bad things in China may be.
Today we get MBA Mortgage Applications, Durable Goods Orders and Capital Goods Orders.