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Oil Soars Most Since Feb 2009 On OPEC Production Cut Headline Redux

Oil Soars Most Since Feb 2009 On OPEC Production Cut Headline Redux

Another day, another OPEC Production Cut rumor, and another massive swing in WTI Crude oil prices. But having run stops to these levels, we wonder what happens next?

 

This 11.5% ramp is among the biggest single-day moves in oil's history...

 

Driving realized volatility near record highs...

 

But sadly, stocks are not correlating...

Don't Show Bill Dudley This Chart

Don't Show Bill Dudley This Chart

The Fed's Bill Dudley just unleashed the most cognitively dissonant statement of his career. That superlative is highlighted by theses two headlines:

  • DUDLEY SAYS U.S. ECONOMY IS IN QUITE GOOD SHAPE
  • DUDLEY: DON'T SEE NEGATIVE RATES HAVING 'BIG CONSEQUENCE'

Try telling The BoJ's Kuroda that!!

 

 

Nope - no consequence at all...

Yet again his comments confirm The Fed's utter confusion...

Today:

More Bad News For European Banks? ECB Leaks "Firm Support For A Deposit Rate Cut"

More Bad News For European Banks? ECB Leaks "Firm Support For A Deposit Rate Cut"

After starting out strongly this morning, with DB stock trading just shy of $17/share, European banks have seen some weakness in the past hour following a report from Reuters, in which sources were cited as saying that there is "firm support for a deposit rate cut within the European Central Bank's Governing Council." While a year ago this would have sent European stocks soaring, this is no longer the case as explained by none other than Deutsche Bank last weekend:

Business Inventories Jump, Sales Tumble Sending Ratio To Recession-Warning Cycle Highs

Business Inventories Jump, Sales Tumble Sending Ratio To Recession-Warning Cycle Highs

After some stabilization into mid-2015, the ratio of business inventories-to-sales has surged as sales have disappointed and mal-investment-driven dreams have over-stocked. Business inventories rose 0.1% MoM in December (retail up 0.4%) and sales tumbled 0.6%.

Year-over-year, Inventories are now up 1.7% (led by retailers up 5.4%) while Sales are down 2.4% (led by Manufacturers down 5.1%)

Recession?

 

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