Opportunistic Trader Overnight Recap 1/4/2019

Key Headlines:

-NFP day in the US.  Market is expecting about 180,000 jobs added in December

-FOMC Chair, Powell will participate in a panel discussion with former Fed chiefs Janet Yellen and Ben Bernanke at the American Economic Association and Allied Social Science Association 2019 Annual Meeting scheduled for 10:15 AM ET

-DOE will release Crude oil and Natural Gas Inventory reports today



European and Asian stock markets were mostly higher overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, following big losses Thursday. There are growing hopes the U.S. and China will resolve their major trade dispute in the coming weeks, which has put a bid back into world stock indexes today. China Friday confirmed a meeting between its trade officials and U.S. trade representatives will take place next week.


Traders are awaiting what is arguably the most important U.S. data point of the month: Friday morning’s employment situation report for December from the Labor Department. The key non-farm payrolls number is seen coming in at up 176,000.


The December ADP national employment report, released Thursday morning, came in at up 271,000, which was much higher than the consensus forecast of up 178,000. The December ADP number was the highest growth rate in 2018. This has some market watchers thinking today’s more important jobs number from the Labor Department will come in higher than expected.


In overnight news, China’s central bank eased its monetary policy by cutting the reserve requirement ratio for banks. The move is intended to jumpstart China’s declining economic growth rate.


In other overnight news, the Euro zone inflation rate fell sharply in December. Consumer prices were up 1.6%, year-on-year—down from a rate of up 1.9% in November. The drop in December was mainly due to falling energy prices. Meantime, the producer price index in the Euro zone was down 0.3% in December, month-on-month, and up 4.0%, year-on-year.


The key outside markets today see the U.S. dollar index weaker. Meantime, Nymex crude oil prices are higher and trading just above $48.00 a barrel.


Other U.S. economic data due for release Friday includes the U.S. services purchasing managers index (PMI) and the global services PMI. The weekly DOE liquid energy stocks report is also due for release today.