waltky
Wise ol' monkey
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Granny says, "2% - dat's another 6 cents a gallon?...
Oil prices jump, shrug off equity slump, glut concerns
Mon Feb 8, 2016 - Crude oil prices jumped as much as 2 percent on Tuesday, shrugging off big drops in Japan's stock market and eroding some of the previous session's losses that were driven by festering concerns about global oversupply.
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Global stocks dumped for safe havens as bank fears flare
Mon Feb 8, 2016 - Asian share markets were scorched on Tuesday as stability concerns put a torch to European bank stocks and sent investors stampeding to only the safest of safe haven assets.
Oil prices jump, shrug off equity slump, glut concerns
Mon Feb 8, 2016 - Crude oil prices jumped as much as 2 percent on Tuesday, shrugging off big drops in Japan's stock market and eroding some of the previous session's losses that were driven by festering concerns about global oversupply.
U.S. crude CLc1 was up 49 cents at $30.18 a barrel at 0259 GMT, after rising as far as $30.30. The contract fell about 4 percent on Monday, finishing at $29.69. Global crude benchmark Brent LCOc1 was up 35 cents at $33.23 a barrel. It settled the previous session down $1.18 at $33.88. Prices on Monday were hit by a drop in U.S. equity markets amid persistent fears about the global economic slowdown. But on Tuesday, oil market traders ignored a 5-percent drop in Japan's Nikkei .N225. Many Asian markets are closed for Lunar New Year holidays. "Once again we have got a weaker U.S. dollar and I suspect that that's where the bulk of the support is coming from," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
The U.S. dollar fell against the Japanese yen =JPY as sentiment towards most risk assets turned bearish amid concerns about banking stability. A declining dollar makes oil prices cheaper because most trade is denominated in the greenback, potentially spurring demand. Still, the glut in world oil markets is unlikely to abate soon, with a Reuters survey showing U.S. crude stocks likely rose by 3.9 million barrels in the week ended Feb. 5. Industry group American Petroleum Institute on Tuesday releases its weekly inventory reports <API/S> followed by official numbers from the U.S. government's Energy Information Administration on Wednesday. "The fundamentals haven't shifted. The market remains in surplus and while that's the case, it is very difficult for prices to sustain any gains," McCarthy said.
There is also little sign of any coordination among big producers outside the United States after weekend talks between OPEC members Saudi Arabia and Venezuela on possible coordination yielded little. That dims prospects of any initiative on curbing supply to boost prices including producers like Russia, analysts say. "Hopes of a coordinated supply cut from OPEC and non-OPEC members continue to fade," ANZ said in a research note on Tuesday.
Oil prices jump, shrug off equity slump, glut concerns
See also:
Global stocks dumped for safe havens as bank fears flare
Mon Feb 8, 2016 - Asian share markets were scorched on Tuesday as stability concerns put a torch to European bank stocks and sent investors stampeding to only the safest of safe haven assets.
As fear overwhelmed greed, yields on longer-term Japanese bonds hit zero for the first time ever, the yen surged to a 15-month peak and gold reached its most precious since June. Japanese Finance Minister Taro Aso felt moved enough to warn the yen's rise was "rough", something of an understatement as the Nikkei nosedived 4.9 percent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 percent, and would have been lower if not for holidays in many centres. "Sentiment towards risk assets remained extremely bearish and price action reflected a market that may be capitulating," said Jo Masters, a senior economist at ANZ.
All of which magnified the stakes for Federal Reserve Chair Janet Yellen's testimony this week. "She needs to come across as optimistic without being too hawkish and cautious without being negative," said Masters. "Hawkishness or dovishness could easily exacerbate the current sell-off, tightening financial conditions further." Wall Street did pare its losses but still ended deep in the red. The Dow lost 1.1 percent, while the S&P 500 fell 1.42 percent and the Nasdaq 1.82 percent. [.N]
The rout began in Europe where the FTSEurofirst 300 index shed 3.4 percent to its lowest since late 2013, led by a near 6 percent dive in the banking sector. Deutsche Bank alone sank 9.5 percent as concerns mounted about its ability to maintain bond payments. Late Monday, the German bank said it has "sufficient" reserves to make due payments this year on AT1 securities. The cost of insuring bank debt against default also climbed to its highest since late 2013. Borrowing costs in Spain, Portugal and Italy jumped as investors demanded a fatter risk premium over safer German paper, where two-year yields hit record lows at minus 52 basis points.
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