Stocks, It's all about Oil...
Stock-Markets / Stock Markets 2016 Mar 11, 2016 - 05:38 PM GMT
It’s all about oil as the IEA and banks do their best to elevate the price of oil, topping at 38.95 this morning while encouraging oil companies to raise cash with equity offerings at their newly inflated price so that their (bank’s) loans may be paid off. The obvious conflicts of interest (and possible jail time) are being ignored, indicating the sense of desperation about this maneuver.
ZeroHedge reports, “In its latest monthly market report released early on Friday, the International Energy Agency forecast that oil prices may have bottomed as shrinking supplies outside OPEC and disruptions inside the group erode the global surplus. This comes just one month after it had a far gloomier assessment of oil prices, warned on excess supply, and asked if the market was witnessing a "false dawn."
“There are signs that prices might have bottomed out,” the Paris-based adviser said. "For prices there may be light at the end of what has been a long, dark tunnel” as market forces are “working their magic and higher-cost producers are cutting output."
In the meantime, the Premarket is challenging yesterday’s cash high. Like yesterday, the futures made a nominal new high this morning at 2011.61, but has settled back beneath that level. Whether SPX can make a new high after the open is to be determined. USD/JPY is markedly lower after its overnight ramp.
ZeroHedge comments, “Three months ago, on December 4, when the ECB clearly disappointed markets and European stocks tumbled as the Euro soared, it took a speech by Mario Draghi at the Economic Club in NY to send stocks soaring...
... when Draghi explained that the ECB's announcement was not at all "disappointing", and subsequently held this exchange with former BOE head Mervyn King who asked "was today's speech deliberately designed to try offset some of the reaction yesterday?" to which Draghi responded "Not really... well, of course." As shown in the chart above, stocks promptly soared if only briefly.”
TNX isn’t participating in this Premarket rally, which may give an indication of what may happen after the open.
Meanwhile, global liquidity continues to collapse to crisis levels. This won’t end well.
Regards,
Tony
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