Monday, September 23, 2019

Daily Market Report 9/23/19 Today, we have data from Markit PMI flash for the month of September.  The manufaturing data rose to 51.0; while the services data rose to 50.9.  However, the Eurozone reported some pretty ugly numbers in manufacturing, which is partly why Stocks are currently in the Red this morning.  The Chinese are reporting that the cancellation of the farm visits in Montana have no bearing on the negotiations and were downplaying it's meaning.  This is helping to ease the Markets some, as it turned a bit ugly on Friday after the announcement.  MBS is currently Up 14bps, so Mortgage rates are better today.  They broke above it's 50 DMA on Friday and continue to rise, and will face resistance at the 25 DMA.  The Yields are down to 1.67%, and approaching it's floor at the 25 DMA.  It broke below it's double floor (50 DMA and Fibonacci) on Friday and continuing it's downward trend.  There is caution this week, as the PCE report is due Friday.  This is the Fed's favorite gauge for inflation.  The CPI last reported at a 11 year high.  If PCE comes in a bit hot on Friday, then MBS may lose much of it's gains, as inflation is the worst enemy to Bonds/MBS.  Be cautious this week!

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