Skip to main content

Five Things You Need to Know to Start Your Day

 Bloomberg by Lorcan Roche Kelly

Trump suffers a court setback, oil rallies, and the U.K. faces a battle in Europe. Here are some of the things people in markets are talking about today.

Ban Thwarted

President Donald Trump promised to "SEE YOU IN COURT" after a federal appeals court upheld the temporary freeze on his travel ban imposed by a court in Seattle. It now seems certain that the case will head to the Supreme Court, although the timing of any challenge is unclear. Separately, the president promised to release a “phenomenal” tax plan in the coming weeks, without offering any details of what is in store. 

Oil Spike

Crude prices rallied more than one percent after the International Energy Agency said that OPEC has achieved the best compliance in its history with respect to an agreement to curb production. A barrel of West Texas Intermediate for March delivery was at $53.51 at 5:29 a.m ET, after the IEA also said that demand for the commodity was rising faster than expected, aiding efforts to rebalance the market, which has been trying to deal with excess production. 

May's Difficult Battle

British Prime Minister Theresa May's vision for Brexit is antagonizing EU officials, setting the stage for bruising negotiations following the triggering of Article 50 of the Lisbon Treaty. May's threats on tax and security policy if she doesn't get a favorable deal are increasing the chances of her getting no deal at all, according to five Brussels-based diplomats who spoke on condition of anonymity. There was better news on the economy front as data released showed U.K. industrial production beat estimates for the end of 2016, and the trade deficit narrowed. 

Markets Rise

Overnight, the MSCI Asia Pacific Index rose 0.9 percent, while Japan's Topix index rallied 2.2 percent as the yen weakened boosting exporters. In Europe, the Stoxx 600 Index was 0.1 percent higher at 5:42 a.m. ET as the resource sector continued to outperform. U.S. stock futures also gained. Short-term Greek debt rallied as the country's creditors may present the government with a framework of measures required for completing the nation’s stalled bailout review, according to people familiar with the matter.

Iron Rally 

Iron ore futures on the Dalian Commodity Exchange surged past $100 a ton, while spot ore rose to $83.84 a dry ton, the highest since October 2014, amid optimism about the outlook for consumption. The rise came after official data showed that China's exports surged 7.9 percent from a year earlier in dollar terms, leaving the country with a trade surplus of $51.4 billion. Better news for China on the political front too as Trump reaffirmed the U.S. 'one-China' policy in a call with President Xi Jinping.

Comments

Post a Comment

Popular posts from this blog

Womack Weekly Commentary: September 18, 2017

­Womack Weekly Commentary September 18, 2017 The Markets “In theory, there is no difference between theory and practice, in practice there is.” Yogi Berra was talking about baseball, but the concept also applies to diversification, according to the GMO White Paper, The S&P 500: Just Say No . From the title, you might think the authors – Matt Kadnar and James Montier – don’t like U.S. stocks. They do: “Being a U.S. equity investor over the past several years has felt glorious. The S&P 500 has trounced the competition provided by other major developed and emerging equity markets. Over the last 7 years, the S&P is up 173 percent (15 percent annualized in nominal terms) versus MSCI EAFE (in USD terms), which is up 71 percent (8 percent annualized), and poor MSCI Emerging, which is up only 30 percent (4 percent annualized). Every dollar invested in the S&P has compounded into $2.72 versus MSCI EAFE’s $1.70 and MSCI Emerging’s $1.30.” The au
9 comments
Read more

Another Tornado Record's in Sight for U.S. as Thunderstorms Boom

Bloomberg by Brian K Sullivan Another wave of tornado-spawning thunderstorms is set to rip across the Great Plains and South this week, putting the U.S. within reach of a record year for life-threatening twisters. Severe storms will drench a swath of the country from Texas to Mississippi over the next five days, according to the U.S. Storm Prediction Center. Through Thursday, 369 tornadoes have been reported across the country, the most in five years and more than double the normal number of sightings. An active jet stream and unusually balmy weather are to blame for the burst of deadly tornado activity, the storm prediction center said. Strong winds have dragged storms into the warm, humid air that’s blanketed the eastern half of the nation, creating conditions ripe for a weather phenomenon that leads to at least $400 million in damage a year in the U.S. “We have a severe threat starting today and continuing for each of the next five days through at least Monday
Post a Comment
Read more

Pandemic-Driven Demand Is Providing Fuel for Investors

  For four weeks, the U.S. stock market has sparked and sputtered like a campfire in light rain. Today, pandemic-driven demand is providing fuel for the investors. The need for certain types of products and services has accelerated and innovation is creating new opportunities. Consider: ·      Technology . Today, digital technologies support nearly all group interactions, which has accelerated innovation. Traditional video communications platforms are in high demand, and multi-person virtual platforms are emerging. Robotics innovations are racing ahead, too. Robotic dogs enforce social distancing in Singaporean parks, reported Accenture. Other types of robots sanitize streets and facilitate contact-less delivery around the globe. ·      Consumer products and services . COVID-19 increased demand for staples, cleaning, and personal hygiene products. The virus may have inspired deeper and longer-lasting changes in consumer behavior, too. Accenture reported people are favor
1 comment
Read more