U.S. Session Buzz: Fair Value Found

Current Futures: Dow +37.00, S&P +3.70, Nasdaq +7.50

The global markets look a little lost at the moment, both for direction and for motivation, and it seems that this will likely be how August goes, with equity, commodity, bond and currency valuations being scrutinized each day to ensure that nothing was missed or overlooked that may have been important. The break-out moves in all markets have no real momentum, and reflect that the markets have found fair value. Unless a motivating force comes to the fore, be it economically or sentimentally driven that defines the fact that valuations are obviously wrong, the path of least resistance seems to be to hold tight and to be content to trade in a fairly tight near-term range.

U.S. equity futures are in the green, not convincingly however, and follow on from a period of overnight Asian and European trade that has been thin and sketchy. The two economic releases of note today are Canadian retail sales at 08:30 EDT, and U.S. oil inventories at 10.35 EDT. It will need a dramatic miss on either of those to get prices moving it would seem.

Thursday of this week brings the meeting of central bankers hosted by the Fed, and that may provide the spark to set things moving. Until then it looks as though the markets are content to consolidate around the newly found fair values.

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