US markets continued to tick higher but the volume was weak and strength faded into the close. The Dow finished up 39 points to close at 19,883.
These days I tend to view the world in three major economic zones. The first is the US which is an island of prosperity compared to the rest of the world.
The next zone is China/Asia/Japan/emerging markets which are in turmoil with negative interest rates in Japan, capital outflows in China and smaller nations caught in a vice between a strong dollar and a game of competitive devaluation being carried out by central banks in a lemming like rush to spark exports. Japan seems to be making progress but China is a question mark.
The final zone is Europe which is facing slow economic growth, migrant pressures and a possible breakup of partnerships. The big news today was the assassination of the Russian Ambassador to Turkey in Ankara. The murder sent the Turkish Lira into a tailspin against the US dollar as Erdogan wrestles with a rising tide of Islamic terror and a weak economy. What is troubling about this attack is the killer was part of a Turkish police special ops unit meaning that there are few if any safe places in the country. Meanwhile, Banks in Italy took a hit today when one of the eight banks currently on the precipice of bankruptcy put out a desperate call for cash. The Italian gubment might have to step in if the call goes unanswered.
Oil was flat and gold prices were up a touch today.