OPEC Doesn’t Like It
Energies are
rallying, turning around severely oversold conditions after OPEC said it is
considering lowering output quotas to the lowest level in 11 years to
contain the slide in the price of oil. OPEC has a meeting scheduled for next
Wednesday and output cuts, originally not expected to come before the
beginning of next year, could arrive as soon as December. Crude, unleaded
gasoline and heating oil are all about 4% higher.
Stock indexes
continue to rally, overcoming key resistance levels. All three majors were eligible
for Off The Blocks
longs this morning due to their standing on the Momentum-5
or
New 10-Day Highs lists. December Nasdaq 100 futures
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and
S&P futures
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Dow futures
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The rally in stock indexes is a negative for bonds as
much higher returns on capital are being seen in equities. A downtick in
weekly jobless claims is also a negative for bonds. T-bonds
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down 21/32 at 110 27/32. Higher oil and commodity prices are also negative
for inflation-sensitive bonds.
Also in the momentum department after rallying 5%
yesterday and scoring a
New 10-Day High,
December cocoa
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some talk on newswires of farmers holding back the crop due to low
prices.
Both the
euro FX
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British pound
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session after the European Central Bank and Bank of England cut interest
rates 50 basis points. Notice here that the Australian dollar
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Australia are 4% compared with 2% in the US, 3.25% in the European Community
and 4% in the United Kingdom.