Backdoc: WITH ASSET PRICES READY TO RETEST THE LOWS IN AUGUST OR CHALLENGE NEW LOWS WE ARE BEGINNING TO SEE THE EARLY SIGNS OF THE POLITICAL SOLUTION TO BLACK GOLD OVER PRODUCTION!
WITH U.S. RIG COUNTS DROPPING BUT EFFICIENCY GOING HIGHER MORE RIG COUNTS WILL SURELY DROP!
THE GREAT NEWS IS RUSSIA SEEMS TO BE SOFTENING ITS TONE NOW AND IS WILLING TO START TALKS WITH OTHER OIL PRODUCERS!
MMMM THIS SHOWS “THE DEAL” WITH IRAN IS STARTING TO MATURE! AS THE U.S. SIDESTEPS IN SYRIA, RUSSIA AND IRAN BRING SECURITY TO THE MIDDLE EAST!
NO DOUBT FRANKS INTEL WILL PROVE RIGHT VERY SOON WITH OIL PRODUCERS! SAUDIA ARABIA HAS TO MAINTAIN ITS PRODUCTION HIGHER AS IT HAS VERY LITTLE OTHER PRODUCTS OR SERVICES TO RENDER! MAYBE THAT’S WHY THEY CUT THEIR PRICE PER BARREL AGAIN! MMMM
REMEMBER THE SOLUTION WILL BE POLITICAL, OTHERWISE PRICES WILL COLLAPSE DUE TO OVER PRODUCTION!
8@8, DOC IMO
Thunderhawk: Backdoc Alert
Oil gains as Russia set to meet with producers; stock markets up
Oil prices jumped after Russia said it was ready to meet with other producers to discuss the market, while world stock indexes rose with commodity-related shares amid a backdrop of low global interest rates.
The S&P 500 rose for a fifth straight session for the first time this year, helped by increases of more than 2 percent in S&P’s energy .SPNY, materials .SPLRCM and industrials .SPLRCI indexes.
The S&P health index .SPXHC, up just 0.3 percent, underperformed the broader market with biotechs falling as sector sentiment tumbled alongside shares of Canada’s Valeant Pharmaceuticals (VRX.TO) (VRX.N) and after industry complaints the Trans-Pacific Partnership agreement falls short on patent protection for drugs.
Valent’s U.S. shares slid 10.3 percent to $163.46.
News that Nelson Peltz’s Trian Fund Management disclosed a roughly 1 percent stake worth $2.5 billion in GE (GE.N) lifted GE’s stock 5.3 percent to $26.82, the biggest positive influence on the S&P 500.
“The market was a bit oversold,” said Stephen Massocca, chief investment officer at Wedbush Equity Management LLC in San Francisco. “Energy stocks are very oversold so they’re a big contributor to the rally today. Commodity names seem to be catching a bit of a bid. We’re still looking for low interest rates and the Fed to be on hold for a while.”
The Dow Jones industrial average .DJI rose 304.06 points, or 1.85 percent, to 16,776.43, the S&P 500 .SPX gained 35.69 points, or 1.83 percent, to 1,987.05 and the Nasdaq Composite .IXIC added 73.49 points, or 1.56 percent, to 4,781.26.
European stocks surged, with the FTSEuroFirst 300 index .FTEU3 in Europe ending up 3 percent. Data showing euro zone business activity grew at its weakest pace in four months during September reinforced expectations monetary policy backdrop will remain equity-friendly.
MSCI’s all-country world index .MIWD00000PUS was up 1.9 percent.
Oil prices climbed after the news on Russia, with Brent LCOc1 settling at $49.25 a barrel, up $1.12 or 2.3 percent. and U.S. oil’s West Texas Intermediate (WTI) crude CLc1 up 72 cents, or 1.6 percent, to settle at $46.26.
Russia, one of the world’s top three oil producers, said it was prepared to meet OPEC and non-OPEC oil producers to discuss the market if such a meeting is called.
Moscow had been unwilling in the past to cut its oil output to support prices.
The U.S. dollar rose against a basket of major currencies on renewed investor risk appetite in the wake of a disappointing U.S. jobs report.
A U.S. rate hike is expected to boost the dollar by driving investment flows into the United States. While the dollar has previously weakened on expectations for later Fed rate hikes, the greater risk appetite took precedence on Monday.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was last up 0.26 percent at 96.081, marking a recovery from a nearly two-week low of 95.218 hit Friday
Before Friday’s jobs data, the Fed had been widely expected to raise U.S. interest rates by year-end. It decided not to change its policy path in September.
Japan’s Nikkei .N225 ended the day up 1.6 percent, while Chinese markets were closed for a holiday.
Analysts said the Bank of Japan could ease policy as soon as this week, though action at its Oct. 30 meeting may be more likely.
In the bond market, U.S. Treasuries prices fell, with benchmark yields climbing from their lowest since April, as weak services sector data supported the view that the Fed is unlikely to raise rates soon, spurring investors to move into stocks from bonds.
The Institute for Supply Management said its gauge on U.S. services industries fell to its lowest level since June.
U.S. benchmark 10-year Treasury notes US10YT=RR were down 20/32 in price to yield 2.059 percent, up 7 basis points from late Friday. The 10-year yield touched 1.904 percent on Friday, which was its lowest since late April, according to Reuters data.
Gold was little changed, as profit-taking set in after a rally. Spot gold XAU= had turned down 0.1 percent at $1,136.11 an ounce. Copper prices jumped.
NOW ITS UP TO INVENTORY RESULTS TO SEEK THE FACTS!
DEMAND ALSO PLAYS A PART HERE! IF IT DROPS, MORE CUTS WILL BE NEEDED!
Thunderhawk: Hint Russia May Work With OPEC Sends Oil Prices Soaring
Oil prices jumped in world markets October 5 after Russia’s energy minister over the weekend said Russia might attend an OPEC meeting to discuss the depressed state of oil prices.
Russian Energy Minister Alexander Novak told the Sochi-2015 international investment forum October 3 that Russia and the Organization of the Petroleum Exporting Countries might organize a meeting between technical specialists.
“Russia is ready to participate in discussing the situation emerging in the oil and gas markets,” he said.
It would be a first for Russia, which as one of the world’s top three oil producers has never joined or cooperated with the price-setting cartel. But today’s depressed oil prices have been crushing Russia’s economy and government revenues.
Novak’s remarks sent oil prices soaring by 2.3 percent in London trading, with Brent crude settling up at $49.25 a barrel.
“The news provided strong upside momentum in the oil market, as Russia has been thus far unwilling to cut oil production and cooperate with OPEC members to support current low crude oil prices,” said Myrto Sokou, analyst at Sucden Financial Research.
Backdoc: THE SEARCH FOR THE NEW GLOBAL REALITY MAY BE CLOSER THAN WE THINK! IF CHINA STABILIZES HERE WE MAY BE CLOSE. OTHERWISE WE MAY HAVE ONE MORE LEG DOWN! THE ANSWER WILL COME WITH BLACK GOLDS NEGOTIATIONS! DOC IMO
Thunderhawk: Backdoc Alert
Asian shares rise on fading Fed rate views
Fading expectations that the U.S. Federal Reserve will raise interest rates this year and a bounce in oil prices helped lift Asian stocks to two-week highs on Tuesday.
The cheer was expected to extend into European trading, with financial spreadbetters predicting Britain’s FTSE 100 .FTSE would open up 0.4 percent. Germany’s DAX .GDAXI was seen opening 0.5 percent higher, and France’s CAC 40 .FCHI was called to open up 0.6 percent.
“European equities are set to start with modest gains this morning as the prospect of loose monetary policy continues to give a little more fleeting upwards momentum,” said Jonathan Sudaria, dealer at Capital Spreads.
“However, the fact that the bulls have to rely on what was once deemed to be ’emergency’ measures to go higher should actually be reassuring to the bears,” he said in a note to clients.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.8 percent in afternoon trade, after earlier touching its highest levels since Sept. 18.
Japan’s Nikkei .N225 ended up 1 percent, extending its rebound from an eight-month low hit a week ago.
“One of the two big persistent concerns has faded, so investors are taking risks,” said Masashi Oda, senior investment officer at Sumitomo Mitsui Trust Bank, referring to expectations of a near-term Fed hike.
“Short-covering by those who had shorted stocks on those worries will likely support the market for a while.”
Japanese shares garnered further momentum from speculation that the Bank of Japan might expand its stimulus program to support the flagging economy.
The BOJ began its two-day policy meeting on Tuesday, at which it is widely expected to hold monetary policy steady. But a surprise cannot be ruled out, and pressure is building on the central bank to act.
At its next meeting on Oct. 30, the BOJ is expected to cut its long-term economic and price projections.
Also underpinning sentiment, 12 Pacific Rim countries including the United States, Japan and Canada reached the most ambitious trade pact in a generation, though some analysts say the benefits of the far-reaching plan are far from clear at this point.
“The market seem to be driven by speculation on policy steps, including uncertain benefits from the Trans-Pacific Partnership (TPP),” said Hitoshi Ishiyama, chief strategist at Sumitomo Mitsui Asset Management.
Fed officials have said the central bank is likely to raise rates this year as the U.S. economic recovery progresses, but surprisingly weak U.S. jobs data on Friday led many investors to abandon expectations of a rate hike by the year-end.
That boosted sentiment towards riskier assets, which have been long hit by threats of higher dollar borrowing costs as well as fears of a deeper slowdown in China.
Wall Street rallied overnight, and MSCI’s broadest gauge of world stocks .MIWD00000PUS rose 1.9 percent on Monday to its highest level in more than two weeks.
Signs of a bounce in battered commodity prices helped soothe concerns of a global slowdown and lifted shares of energy and resource companies.
Global crude benchmark Brent LCOc1 was up 0.4 percent on Tuesday at $49.42 a barrel after soaring 2.3 percent overnight, led by a rally in U.S. gasoline and Russia’s willingness to meet other major oil producers to discuss market conditions.
Brent edged closer to the top end of its rough $46-$50 trading band in the past month. U.S. crude CLc1 was up 0.2 percent at $46.35 after gaining 1.6 percent in the previous session.
The dollar was mixed against major currencies as the headwinds from fading expectations for a Fed hike were countered by positive risk sentiment. The dollar index .DXY, which tracks the greenback against a basket of six major currencies, slipped about 0.1 percent to 96.036.
The dollar traded at 120.38 yen JPY=, down about 0.1 percent, while the euro traded at $1.1188 EUR=, down slightly.
The Reserve Bank of Australia kept rates at a record low of 2 percent as widely expected, and said Australian dollar is adjusting to lower commodity prices.
After the decision, the Australian dollar AUD=D4 erased modest earlier losses and added about 0.6 percent to $.07124 AUD=D4, after hitting a two-week high of $0.7135.
Backdoc: AS WE HAVE READ BEFORE THE VERY SURVIVAL OF THE NAZI BORN CAR COMPANY, VW IS NOW A QUESTION!
WILL THE LARGEST CAR COMPANY IN THE WORLD HAVE ITS OWN HOLOCAUST? HOW WILL ITS FINANCIAL IMPACT AFFECT GERMANY’S ECONOMY?
SEVERE SUFFERING HASN’T REALLY BEGUN YET. LAW SUITS WILL BEGIN TO FLY SOONER THAN LATER. THEY ALSO ARE A FLY IN THE OINTMENT WITH THEIR SLAP! ON GOING GREEN! OUCH!
Thunderhawk: Mexico May Impose Almost $7Bln Fine on Volkswagen
Federal Prosecutor for Consumer Defense Lorena Martinez said that Mexican authorities may impose a fine of almost $7 billion on Volkswagen for equipping some 32,000 diesel cars sold in the country with software that allows vehicles to cheat on emissions tests.
The Mexican authorities may impose a fine of almost $7 billion on Volkswagen for equipping some 32,000 diesel cars sold in the country with software that allows vehicles to cheat on emissions tests, Federal Prosecutor for Consumer Defense Lorena Martinez said Monday.
“This will be a direct sanction following the obvious assumption that the cars did not comply with the norms and the consumer was deceived in terms of characteristics and properties they did not posses,” Martinez said in a statement.
In late September, Volkswagen admitted that it had sold 11 million diesel engine cars worldwide that emitted up to 20 times more greenhouse gas than showed in official emissions tests. According to previous estimates, the carmaker could face up to $18 billion in fines.