Week of June 10 2016 Weekly Recap & The Week Ahead
“I have learned through the years that after a good run of profits in the markets, it`s very important to take a few days off as a reward. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it.”– Martin Schwartz
1. International Tankers Help Ship Iranian Fuel — more than 25 European and Asian-owned supertankers are now shipping Iranian crude, allowing the Islamic Republic to ramp up exports much faster than expected following the lifting of sanctions in January. Tehran was struggling as recently as April to find partners to ship its oil, but after an agreement on a temporary insurance fix, more than a third of Iran’s crude shipments are now being handled by foreign vessels.
2. Eurozone GDP Growth Revised Back Up — the first estimate was 0.6%, which was revised down to 0.5% in the second round, and now in the third report – which includes details on GDP components – the figure has been revised back to its original estimate. Annual growth was 1.7%, unchanged from the fourth quarter, driven by a jump in consumer spending and investment.
3. Hillary Clinton Wins California, Bolstering Claim to Nomination — Hillary Clinton claimed the Democratic presidential nomination last Tuesday night after decisive victories in the California, New Jersey and New Mexico primaries. However, Senator Bernie Sanders refused to yield, insisting that he would continue his campaign.
4. ECB Kicks Off Corporate Bond Buying — the European Central Bank has formally started its corporate sector purchase program, with the official buying list to be released on July 18. The criteria for the plan are as follows: Bonds have to be active, euro denominated, have an investment grade rating and be issued within the eurozone. Along with other measures such as ultra-cheap long term loans and government bond-buying, the program aims to kickstart the region’s economy and lift inflation back to the bank’s 2% target.
5. Soros Is Back to Trading & He’s Bearish — George Soros has returned to trading, lured by opportunities to profit from what he sees as coming economic troubles. Soros Fund Management, which manages $30B for the billionaire and his family, sold stocks and bought gold and shares of gold miners, anticipating weakness in various markets. The last time George Soros got closely involved in his firm’s trading was just prior to the financial crisis in 2008. Per WSJ, Soros noted particular concerns over China, Greek challenges and a potential Brexit that could lead to the EU’s collapse.\
6. Crude Oil Broke Above $50 Per Barrell — crude oil has taken the price of WTI above $50 per barrel to $51.10. At this level, crude oil has now taken out its highs from last October and is trading at its best levels since 7/15/15. It has certainly been an amazing rally for oil prices over the last four months, with prices rising 96% off their lows in February.
The week ahead — Economic data from Econoday.com:
Tags: Oil Prices