Key themes are AWOL – on Monday, beyond what we already know. Surely there are jitters ahead of the FOMC meeting (Tuesday/Wednesday), with for sure more focus on what Chairman Powell provides as to future ‘guidance’. 
In Monday’s action, these are among the top considerations:
1) The U.S. agrees to shut down all coal plans by 2035, complying with G7 but also potentially boosting return to hydroelectric (if possible) and ‘nuclear’,
2) EU Nations (all NATO member, and remembering UK isn’t part of the EU but defends with them all) express interest in a ‘French nuclear umbrella,
3) there are negotiations for a ceasefire ongoing in Cairo and Oil prices are a bit soft for now considering a potential period of ‘calm’ could be forthcoming,
4) S&P remains in a high level trading range dominated by the ‘Grand Dames’ as I terms the handful of dominant leaders, while most others act nervously,
5) Late fade Monday resulting from higher future Treasury Auction estimates.
As for the Fed, we might see Chairman Powell skew a bit more hawkish about current data, and/or will he still maintain ‘inflation coming down in the future’. It has been my view that the Fed is delaying cuts, not abandoning the concept.In my assessments I’ve believed there’s not much confidence in lower prices, but you’ll get a little of that ‘if’ there’s peace in the Middle East (for awhile), as it would soften Oil prices, and the totality of inflation directly relates to…Oil. Market X-ray: Powell won’t likely change his overall pitch, but we’ll see. I do believe you can’t get to the lower levels he talks of without economic or Oil collapse, and I doubt either is forthcoming. In fact ‘even China’ has been as some pain to emphasize business growth more than confrontation.More By This Author:Market Briefing For Monday, April 29, 2024
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