On Tuesday, oil closed lower after it was reported that shale output in the U.S. had increased substantially. The OPEC deal continues to gain traction for the oil market. Forecast shows that there may be another surprise fall in the next stockpile report. WTI crude oil closed lower by 0.24 cents to $52.14. Brent crude oil closed lower by 0.26 cents to $55.10 per barrel. Shale Output Rising There already is a large widespread oil glut around the globe. The problem is that the amount of stockpiles produced must drop to sustain prices. The big issue is that shale output has increased substantially over the years. The reason being is that mor...
Indian share markets continued to trade range bound in the afternoon session as investors turned cautious ahead of a slew of corporate results. The sentiments also remained dull due to mixed international markets. At the closing bell, the BSE Sensex stood higher by 17 points, while the NSE Nifty finished down 2 points. Meanwhile, the S&P BSE Mid Cap and the S&P BSE Small Cap finished up by 0.7% and 0.8% respectively. Gains were largely seen in power stocks and metal stocks. National Aluminium Company Ltd share price plunged 7.8% after it was reported that the government will open the first divestment account today with up...
Following yesterday’s surprising Goldman miss, traders were closely watching the results of its closest comp, Morgan Stanley this morning to determine if the Goldman FICC revenue disappointment was systemic or a one-off event. They were pleasantly surprised when MS beat on both the top and bottom line, reporting revenue of $9.75 billion and EPS of $1.00, both above consensus estimates of $9.29 billion and $0.90, although the EPS did include a discrete tax benefit of $112 million. Profit jumped 70% to $1.93 billion in Q1 2017, from $1.13 billion last year’s dismal first quarter. Revenue grew to $9.75 billion from $7.79 billion a ye...
As I discussed in my previous article, since the beginning of 2017 two large gold ETFs, GLD and IAU, have been generally accumulating gold. However, the largest silver ETF (SLV), has been doing the opposite: Source: Simple Digressions The chart shows that every single month SLV reported an outflow of silver from its vaults. As a result, now there are 327.3 million ounces of silver at SLV vaults: Source: Simple Digressions It means that since the beginning of the current bull phase in gold and silver (December 2015), the SLV holdings increased by a mere 3.0% (look at two red circles). To be honest, it is not an impressive result becaus...
The talk of a strong dollar by the US Treasury Secretary drowned in the political rush in Europe. GBP/USD surged on the election announcement as markets cross their fingers for a soft Brexit. And in France, it’s open season regarding the elections. Commodity currencies are doing alright as China grows. Markets are clearly energized after Easter. Wrap up of the morning show for April 19th 2017: Video length: 00:06:05 ...
Credit Suisse analyst Laurent Grandet upgraded Coca-Cola to Outperform and raised his price target for the shares to $49 from $44. The stock closed yesterday up 41c to $43.48. With incoming CEO James Quincey taking over on May 1, and the refranchising nearly complete, Coca-Cola “has all the pieces in place to be successful again,” Grandet tells investors in a research note. The company has “significant balance sheet flexibility” to invest in the business and fill the gaps in the current portfolio, the analyst adds. ...
The “Nightmare Option” The French presidential election was temporarily relegated to the back-pages following the US strike on Syria, but a few days ago, the Economist Magazine returned to the topic, noting that a potential “nightmare option” has suddenly come into view. In recent months certainty had increased that once the election moved into its second round, it would be plain sailing for whichever establishment candidate Ms. Le Pen was going to face. That certainty has been shaken quite a bit lately. The four front-runners in the first round election, from left to right: François Fillon, Emmanuel Macron, Jean-Luc Mélenchon, Ma...
Economic growth is expected to slow in next week’s first-quarter GDP report, but the probability remains low that a new recession has started. The government’s big-picture update due on Apr. 28 may suggest otherwise, based on recent polling. The median estimate for the “advance” GDP report via CNBC’s Rapid Update survey of economists (as of Apr. 18), for example, sees Q1 output rising by just 0.9% — less than half the 2.1% pace in last year’s Q4. If the projection is accurate, the news will inspire new claims that the US macro trend is sliding over to the dark side. Anything’s possible, of course, but a review of the numbers...
US equity markets continued to wallow again yesterday, as risk-on appetite wanes as global tensions continue to weigh on risk asset classes, bringing to a halt the strong bullish moves post Trump. The classic candle of the 1st March for the YM e-mini on the daily chart was the first potential signal of trouble ahead, with the price action closing as a wide spread up candle but confirmed as moving outside the average true range on above average volume, and signaling a warning of a potential pause and reversal. Indeed the comparative nature of the volume suggested this was a potential trap move, given the spread of the candle, and the associate...
European stocks rebounded after the biggest one-day drop since November, alongside S&P futures, while Asian equities posted modest declines after yesterday’s weak US close. Gold and yen slid, while the dollar gained on the latest Mnuchin comments to the FT according to which Trump was “absolutely not” trying to talk down the dollar. European equities rose 0.4% in early trading, hinting at some cautious optimism following a day of risk off sentiment, and reversing the 0.6% fall in Asian equities outside Japan which dipped to a one-month low.U.K. shares initially traded lower as the pound held much of its gains following...