Major catalyst for the market was the start of the earnings season, with financial companies such as JP Morgan beating on estimates. Some surprise from missed earnings in the consumer staples sectors holds the market from rallying. The broader macroeconomic still concerned of rising inflation in the country and on the recent spike in bond yields. Global political concerns ease as North Korea pauses their nuclear program and as talks begin with China on trade tariffs.
The market is benefited from major news coming from China. One of the largest oil importing country. Hengli Group said it had gained state approval to import 400,000 barrels of crude oil a day. The recent OPEC meeting also led to the oil market remaining bid as the oil producers had got together and managed to pull off a production cut by agreeing among themselves. News of two oil producers in Libya have halted production leading to less of a supply with the growing demand.
The safe haven remains indecisive as the market continues the inconsistency between risk on and risk off. Traders tend to get pulled out of the stock markets that carry risk and get invested into safe havens as risks in the markets and in the world increases. Recent dollar strength as the anticipated rate hikes from the Fed increases.
