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OPEC has told the IMF that the oil price rally is mainly due to geopolitics

  
Analysis, Crude

Reuters citing an OPEC statement they have seen:

  • OPEC told the International Monetary Fund’s steering committee on Thursday that the surge in oil prices was largely due to the Ukraine crisis

The Reuters report adds the key implication:

  • in the latest signal that the producer group would not take further action to add supply

The Saudis are in bed with Russia, both are ecstatic with surging oil prices.

oil 22 April 2022

US equities puke up early gains in a swan dive

  
Analysis, US Market

SPX daily

  • S&P 500 -1.5%
  • Nasdaq -2.0%
  • DJIA -1.0%
  • Russell 2000 -2.3%
  • Toronto TSX -1.6%

The Nasdaq traded 1% higher shortly after the open but when bonds cracked, the market fell apart. New cycle highs in yield in the front end spooked the market. Daly was talking about ‘a couple’ of 50 bps hikes and that hit a market that’s downright frightful about Q1 earnings reports.

It was an odd one in terms of sectors. Commodities were hit particularly hard, including oil. That’s despite a $1.44 gain in crude today, flat natural gas pricing and not much happening in copper. That sounds like funds selling winners to rotate into something else. Either that or there are some real worries about demand out there (particularly Chinese demand).

European major indices close the session with mixed results

  
Analysis, Global Indices

At the start of the US session, the major European  indices  showed gains across the board:

  • German DAX, +1.5%
  • France’s CAC, +1.86%
  • UK’s FTSE 100 +0.3%
  • Spain’s Ibex, +1.0 present
  • Italy’s FTSE MIB +0.25%

As traders look to exit, the major indices are more mixed and off their highest levels:

  • German DAX, +0.98%
  • France’s CAC, +1.36%
  • UK’s FTSE 100 unchanged
  • Spain’s Ibex +0.50 percent
  • Italy’s FTSE MIB -0.30%

Looking at the benchmark 10 year yields, the rates are higher across the board:

Europe yields
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