After the best quarter for US stocks since 2015, global equities have started off Q2 on the right foot, despite caution about the upcoming meeting between President Trump and China's Xi Jinping later this week, and Fed Minutes which are expected to be more hawkish than the FOMC statement.
In an interview with the Financial Times coming less than a week ahead of his meeting with China's president Xi Jinping in Mar A Lago (Xi, however, will not be staying at Trump's "Winter palace" as the SCMP reports) Donald Trump has warned the US "will take unilateral action to eliminate the nuclear threat from North Korea unless China increases pressure on the regime in Pyongyang."
For the 11th week in a row, the number of US oil rigs rose (up 10 to 662 - the highest since September 2015). US Crude production continues to track the lagged rig count, pouring more cold water on OPEC's production cut party.
The rig count grows, tracking the lagged oil price in a self-defeating cycle...
And crude production appears to have plenty more room to run...
And don't forget, as Nick Cunningham detailed, there are thousands of drilled shale wells are sitting idle, unfracked and uncompleted.
In his first comments to journalists since his stunning termination by South Africa's president Zuma on Thursday night, ousted finance minister Pravin Gordhan dismissed an intelligence report used to justify his sacking as “absolute nonsense”. Quoted by the FT, the internationally respected, if feuding with Zuma, Gordhan said the report, which alleged he was plotting to overthrow president Jacob Zuma, was “not the basis on which you fire a minister”.
Stocks fell worldwide on the last day of the quarter, with US equity futures pointing to a lower open even as the S&P is set for its best quarter since 2015 amid persistent economic and political uncertainty.