Unusual relationship between oil price and inventories

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It has been a few months since I wrote my last post, in fact, this is my first post for 2017! Much to my surprise (and disappointment), global share markets have rallied for the last several months since the US Election, and it seems I have missed out on significant gains due to a somewhat early exit from the markets. Both the Dow Jones Industrial Average and S&P 500 have broken record highs after record highs over the last few months, and the All Ordinaries have broken two-year highs in the local market. Hindsight is always wonderful, but the share prices just seemed a bit too high (and risky) for me right now! Continue reading “Unusual relationship between oil price and inventories” →

Beginning of the end of the oil glut

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The focus of the week has been the meeting of the Organization of the Petroleum Exporting Countries (OPEC) members which took place in Vienna, Austria on Wednesday, 30 Nov 2016. For many months, Saudi Arabia, the largest oil producer in the OPEC group, has had ongoing negotiations with other OPEC members to convince them to agree to a production cut amid the oil supply glut and falling oil prices. On 22 Nov 2016, a week before the OPEC meeting, the market was confident that a deal to cut oil production would be imminent, Continue reading “Beginning of the end of the oil glut” →

The Trump rally continues

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As it turns out, the Trump rally has continued strong since the US Election, with all major US market indices posting historic highs on Monday, 21 Nov 2016.

The Dow Jones Industrial Average has posted five historic highs since the Election and the S&P 500 finally cracked an all time high on Monday as well. It seems the market is still euphoric over the prospects of fiscal stimulus and tax relief for businesses under a Trump presidency.

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Market triple threat: US Presidential Election, interest rates and oil prices

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With the US Presidential Election beginning within a day or so, we can finally look forward to seeing an end to the scandalous campaign that it has been. Although I must admit it is entertaining to watch at times, I think I will be quite happy to see some different news headlines for a change. The United States, being arguably the most powerful and influential nation in the world, having a new leader is kind of a big deal. Whether you are a fan of Donald Trump or Hillary Clinton, or neither, there will be many people watching closely to figure out what implications it may have on the US and the rest of the world, including global financial markets.

The United States also happen to have the largest stock markets in the world, and all this political uncertainty over the US Election has spooked some investors. The S&P 500 index,

Continue reading “Market triple threat: US Presidential Election, interest rates and oil prices” →