It was another mild day in equity trading as the Dow slipped 28 points to finish the session at 27,881. Trading volume continues to be mild. Gurus are sitting tight as three events unfold. These include the last Federal Reserve meeting of the year, the upcoming elections in Britain which could determine the fate of Brexit and the entire EU landscape and Sunday’s deadline for the US China trade talks which, for now appear on track.
Oil prices have inched higher and are holding steady just under $60 per barrel for WTI crude. US production continues to rise and stockpiles are high but demand growth is slowing as parts of the world are in a manufacturing slump. China just reported that car sales were down for the 17th month in a row and EV sales in China are off over 40%. Meanwhile in Germany some auto makers are laying off workers as they transition to electric vehicles. A trade deal could help global economic growth which will boost demand for oil
News Flash!!! As the Blip was being prepared news broke that House Speaker Pelosi would support the USMCA trade deal with Mexico and Canada. There were some modifications which the White House will add before it sends to the House where it is expected to be voted upon next week with bipartisan support. From there it goes to the Senate and on to President Trump’s desk. In the press conference everyone seemed very happy with what was happening. This could be good for markets and the economy by protecting north American job markets from Chinese and Asian encroachment.