Monday, 16 September 2019

Energy market drama

US equity indexes mostly closed on a weak note, sp -9pts (0.3%) at 2997. Nasdaq comp' -0.3%. Dow -0.5%. The two leaders - Trans/R2K, settled -0.8% and +0.4% respectively. Near term outlook offers a holding pattern into the Wed' FOMC announcement.




US equities opened on a weak note, but that was impressive considering the chaos within the energy market, where WTIC jumped from the $54s to $63s, after the weekend attacks on Saudi facilities.

Trump naturally stepped in last evening...

... that helped to restrain oil's hyper jump, with some cooling to the $58s, before resuming upward in the afternoon to a fractional new cycle high of $63.38.

Early Monday morning saw the (almost daily) presidential swipe at the fed...

As things are, Wednesday should see rate cut'2 of -25bps, but that clearly won't be enough to satisfy Trump.

Just before the close...

Note the massive gain in WTIC of 12.9% to $61.91, but equities were very resilient.

Volatility picked up, with the VIX settling +6.8% at 14.67. S/t outlook offers a holding pattern ahead of the Wed' 2pm FOMC announcement. The wild card is of course any further 'surprises' in the middle east.

Extra charts in AH (usually around 5pm EDT) @

Goodnight from London
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