Oil is struggling to find direction in the aftermath of the French terror attack, worries about the French election and the direction of U.S. tax reform. Crude oil is on track to have its worst week since March even as reports that petroleum demand in the U.S. is at its best level since the financial crisis in 2008 and the likely extension of the OPEC/non-OPEC production cuts. The perception that U.S. shale oil producers will replace OPEC cuts and concerns about the direction of the global economy after a terror attack in France ahead of Sunday’s French election, is causing many traders to keep their powder dry. In France, a militant group ...
With the euro (somewhat perversely) heading for its second week of gains versus the dollar and its biggest in three months, there’s probably no better time to ask the following: “what happens in the event ‘Frexit’ risk rises?” As we and every other commentator have made clear over the past month or so, Le Pen isn’t the only risk here. And indeed, if one of the mainstream candidates does win, it could serve to strengthen the National Front over the long-run if either Macron or Fillon prove unable to, as one official told Politico this week, “break the paralysis and curb high unemployment.” To quote Bloomberg’s Richard Bre...
Surge in NZ Inflation After five years running below, inflation in New Zealand has finally returned to the bank’s 2% target. The latest data shows that CPI rose 2.2% YoY in Q1 showing a marked increase from its standing at 0.4% just six months ago and also the first +2% reading since the second half of 2013. A large portion of the rise has been fuelled by higher petrol and food prices. Broader inflationary pressures are also rising, however, the key thing now will be whether this reading proves to be the peak for 2017. Data Breakdown Headline CPI increased 1% QoQ with the YoY figure surging from 1.3% to 2.2% Tradable inflation was 0.8% QoQ ...
General Electric (GE) released its latest earnings report before opening bell this morning, posting adjusted earnings of 21 cents per share on $27.66 billion in revenue. Analysts had been expecting earnings of 17 cents per share and $26.37 billion in revenue. In the same quarter a year ago, GE reported $27.85 billion in revenue. By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], via Wikimedia Commons General Electric swings to a profit GE posted GAAP earnings of 7 cents per share or $619 million, an improvement from the year-ago quarter’s loss of 1 cent per share or $61 million. Earnings on continuing operat...
– Silver, platinum and palladium see increased role as investment vehicles – Increase in academic output on the white precious metals is in line with this – Silver and particularly gold are safe haven assets – Silver was a safe haven at times during which gold failed to be – Platinum and palladium less so but have diversification benefits – Silver manipulation is possible and indications of, if not legal proof – Benefits platinum and palladium could provide as money not been fully addressed – Main focus in investment drivers is price – not on drivers of physical demand – Platinum, palladium and silver have different rel...
Day trading is all about getting in, making your profit and getting out as quickly and smoothly as possible. Ideally you are looking to identify two upcoming inflection points, open a position at one and then close the position at the other. To accomplish this you need to identify stocks that will be moving enough that day that you can make a profit from trading them. The best day trading stocks will be changing every day, but there are 3 reliable methods for identifying the most likely movers of the day, making them the ideal stocks to day trade. News Catalyst Any stock that is in the focus of the market that day will be a prime candidate fo...
With a market-thumping 24% return, ‘Energy’ was the top performing S&P sector in 2016. The incredible gains of last year stoked high expectations going into 2017. Let’s take a look at how oil and gas prices behaved during the first three months of this year. Q1 Report Card: Prices Move Lower but Recover from Year-Ago Lows Despite hope offered by the biggest oil deal in a decade and a new pro-fossil fuel administration in the White House, crude prices logged a loss of almost 6% for the first quarter as traders focused on the rising flood of U.S. shale-driven production. In other words, while OPEC’s moves to trim out...
It looks like the Chinese pressure on hoarding some metals is dissipating. Look at copper: Source: Simple Digressions The blue circles indicate periods of decreasing copper stocks at the Shanghai Futures Exchange (SFE). Note that during these periods the prices of copper go down or level off. As the chart shows, since middle March the Chinese have been cutting copper stocks with copper prices following this decrease. Another example – silver: Source: Simple Digressions Similarly to copper, since middle March the Chinese have been cutting silver stocks. Finally, a different picture. This time it is about gold: Ssource: Simple D...
In the previous edition of the Market Overview, we analyzed the potential impact of the European elections on the gold market. As the Dutch elections are behind us, let’s see how the Wilders’ defeat affected the markets and the political outlook for France, where people will vote for the president on April 23. Investors reacted positively to the outcome of the Dutch election, relieved that populists did not win. European stocks and the euro rose, while the France-Germany 10-year bond yield spread declined after the elections. This is because Wilders’ failure is considered to indicate that “the wrong kind of populism” is losing mome...