Morning all.
Quite a big day for markets coming up, with 3 main factors at play.
- US jobless claims data.
- OPEC+ meeting.
- Last trading day before extended holiday weekend.
I think there’s some complacency in markets at the moment as even with another 5 million claims expected on top of the 10 million from the last couple of weeks, markets just keep powering higher as if everything is good now, SP500 higher than is was last June when the circumstances and outlook were wildly different.
There’s is almost a resignation that regardless of the numbers, just buy the market as the FED and the Treasury will support any weakness. This is proving to be true but I have to wonder if this kind of faith has limits that the markets shouldn’t really try to explore.
The most interesting aspect of today for me though is the extended weekend. This means markets will not be able to react to a substantial amount of virus related news flow between this evening and Monday.
Expect the volatility to pick up after 12:30 GMT when jobless claims are released and then all eyes will be on the OPEC+ meeting which is reported to start at 14:00 GMT.
Plenty of time to have a cuppa in the sun before then.
Stay safe, thanks for your time.
$SPX500 $DJ30 $NSDQ100
