Market Update & Important Indicators:
Despite a tough week of lows and corrections, US equity markets snapped back on Friday with the Dow recovering 287 points; China’s ambassador to the U.S. said Beijing has no choice but to respond to what he described as a trade war started by the U.S. “We never wanted a war, but if somebody started a trade war against us, we have to respond and defend our interests”; Oil prices rose sharply this morning as Trump threatens sanctions against Saudi Arabia for the disappearance of Jamal Khashoggi within the Saudi consulate in Turkey. Saudi Arabia, said on Sunday it would retaliate against any punitive measures with even “stronger ones,” according to a statement carried by the official Saudi Press Agency; Gold prices consolidated their gains on Friday with spot gold at $1218. The University of Michigan sentiment survey was 99, below expectations of 100.5 and Septembers 100.1; US earnings pick up this week. On Friday JP Morgan (-1%), Citigroup (+2%) and Wells Fargo (+1%) all reported earnings. Profits rose with Wells Fargo +30%, JP Morgan +24%, though CEO Jamie Dimon warned that banks faced “increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy.