Jittery Trading Following Overnight Stock Market Sell-off in China

Markets are trading in a jittery fashion following an overnight stock market sell-off in China. Since China’s economy and financial markets are so inter-linked with ours; it stands to reason that our markets will react in similar fashion to theirs.

Yesterday the Dow ended the day with an 82 point gain but looks to open 67 points lower in empathy with China. Over in the metals market we find the complex trading lower despite only mixed background signals from Oil and the Euro. Crude is 27 cents per barrel lower in advance of today’s Oil Inventory report. While we do not have the actual estimates at this time; we are told that Oil is expected to show a build in supply but Gasoline a decline.Last trade $68.92.

Given today’s idle economic calendar we find the Euro trading quietly and up 8/100ths of U.S cent higher at $1.4126. As for the metals; Silver is trading 43 cents lower at $13.57. Traders are pointing to a China induced sell off in Copper for the weakness in Silver. Remember Silver is often mined as a by-product of Copper. Gold is $4.00 lower and changing hands at $934.00. Palladium is $272.00 down $3.00. Platinum is down $21.00 at $1211.00.

While the stock market tries to digest the future of our economy; investment guru Warren Buffet had some positive comments. He stated his belief that “the U.S. economy is out of the emergency room and is on a slow road to recovery.”

In other matters of interest Hurricane Bill has been upgraded to a powerful category 4 storm packing winds of 135 mph. The storm is expected to turn north bypassing the east coast of the United States.

Thursday’s economic calendar:

U.S. Initial Claims
U.S. Philadelphia Fed Survey
U.S. Leading indicators
German Producer Prices