“This is the second most overrated market I have ever seen, only behind 1999.”
Archives of “May 2020” month
rssCFTC warns oil prices could go negative again
The Commodity Futures Trading Commission warned exchanges, futures brokers and clearing houses that “they are expected to prepare for the possibility that certain contracts may continue to experience extreme market volatility, low liquidity and possibly negative pricing.”
You’ll recall back in April when the May contract West Texas Intermediate crude price fell under below zero , settled in negative
Next week brings the June WTI contract expiry on May 19. Storage concerns ahs eased, and prices have recovered.
there’s going to be no v-shaped recovery this year – it will take several years
US Navy warship sailed through the Taiwan StraitUS Navy warship sailed through the Taiwan Strait
US Navy statement confirms the transit of an Arleigh Burke-class guided-missile destroyer through the Taiwan Strait on Wednesday
- “The ship’s transit through the Taiwan Strait demonstrates the U.S. commitment to a free and open Indo-Pacific.”
Its not only trade tensions between the US and China. Rising tensions are contributing to a rise in risk trade wariness sentiment. This weighs on equities and currencies such as AUD.
US Treasury Secretary Mnuchin says he spoke with Federal Reserve Chair Powell today
Mnuchin in an interview with Fox
- says Q2 will be a bad quarter for the economy
- better quartes will come
- next year we’ll be back to having a great economy
Does not say what he spoke about with Powell
More:
- says if we need to spend more money down the road to aid economy, we will do that, but not in a rush to do so this week
Major US indices end lower. S&P and NASDAQ close lower for the 2nd straight day
Dow industrial average close lower for the 3rd straight day
The major US indices are closing the session with declines. The S&P and NASDAQ close low for the 2nd consecutive day while the Dow industrial average has been down 3 days in a row.
The final numbers are showing: him
- S&P index fell -50.12 points or -1.75% to 2820.00. The high reached 2874.14. The low reached 2793.15 before rebounding into the close
- NASDAQ index fell -139.38 points or -1.55% to 8863.16. The high reached 9074.15. The low extended to 8752.68.
- Dow fell -516.81 points or -2.17% to 23247.93. The high reached 23708.90. The low extended to 23067.64.
The stock market moved lower as Fed chair Powell warned of a long road to recovery.
Big losers on the day included:
- United Airlines, -8.8%
- Delta Air Lines, -7.7%
- Schlumberger -7.26%
- Wells Fargo, -6.24%
- American Express, -6.09%
- Walgreens, -5.43%
- Exxon Mobil, -5.01%
- Southwest air, -4.88%
- Micron, -4.79%
- Bank of America -4.57%
- Raytheon technologies,-4.55%
- Travelers, -4.33%
Some winners today included:
- BlackRock, +7.08%
- Chewy, +3.74%
- General Mills, +1.66%
- Papa John’s, +1.59%
- Netflix, +1.47%
- Merck, +0.96%
- Amazon, +0.55%
Thought For A Day
Cable gives back all the gains and falls to five-week low
Dollar strength unwinds cable gains
GBP/USd is at the lows of the day, down 18 pips to 1.2242. Shortly before Powell, the pair rose as a high as 1.2337 so we’re nearly a full cent from the best levels.
In the latest drop, the April 21 low of 1.2248 was narrowly breached. If that gives out then it could be a quick trip down to 1.2166.
Weekly US oil inventories -745K vs +4000K expected
Weekly petroleum inventory data from the EIA:
- First draw since January
- Crude -745K vs +4000K expected
- Gasoline -3513K vs -2500K expected
- Distillates +3511K vs +3000K expected
- Cushing -3002K vs +2068K a week ago
This is a surprise and it’s boosted WTI back to $26.00.
Late yesterday, the private data from API showed:
- Crude +7600K
- Gasoline -1911K
- Distillates +4712LK
- Cushing -1000K
Hong Kong net exports of gold to China just surged to record levels.
Most of it is claimed as “not held as reserve assets by authorities”. Chinese capital outflows escalating again? It’s the first surplus in a decade.
