It appears that the recent market correction may have run its course for now. Yesterday the Dow shrugged off early losses to finish with a 0.8% gain although the NASDAQ finished down 0.4%. With the exception of Tokyo which fell 1.8% overnight, overseas markets have been on the rebound, including gains of 2.5% for Shanghai, 1.8% for Hong Kong, 0.9% for Frankfurt and Paris. US index futures are up 0.3% to 0.6%, led by the NASDAQ.
Cryptocurrencies are also rebounding this morning, including a gain of 3.3% for Bitcoin, indicating renewed enthusiasm among investors. The US10-year treasury note yield is steady and other currencies are up slightly against the US Dollar. Energy commodities are giving back some of their recent gains with Crude Oil down 0.6% and Natural Gas down 3.4%.
Inflation is back in focus today. Talk that US tariffs could be implemented in a staged approach has eased fears of an inflation shock. Headline US producer prices (3.3% vs street 3.4% and previous 3.0%) increased less than expected. Tomorrow brings inflation numbers for the UK, and US consumer prices.
Confession season has been quiet so far this morning. Earnings season gets underway officially tomorrow with JPMorgan Chase*, Goldman Sachs*, Wells Fargo, Citigroup, and Blackrock reporting results. More major US banks and financial services companies headline the rest of the week.
* Shares of JPMorgan Chase and Goldman Sachs are held in portfolios managed by SIA Wealth Management.