Technical & Fundamental Oil Reports Specialists

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Look out for stalkers

Published Monday, March 31st, 2014

The Crimea may no longer be on the front page but it stalked the market all of last week and will continue to do so this week. Hopes that something would come out of yesterday’s Kerry/Lavrov meeting proved to be unfounded and it seems that Russia is still making demands. We can be certain of plenty of twists and turns in the coming days and weeks. The Crimea is not the only stalker around.

You have to be deaf not to have heard the rising chorus of warnings about the mispricing of risk with the search for yield leading investors back into the treacherous land of junk bonds and securitisation. There was perhaps the first sniff of the dangers ahead in last week’s heavy technology and biotech sell off on the Nasdaq.

Reluctantly it is dawning on the Eurozone and the ECB that it too is also being stalked by deflation as well as by Mr Putin. Spanish prices fell by 0.2% in March and it is one of 4 members where prices are falling. Overall Eurozone inflation fell to 0.6% in March from 0.7% in February. Even Bundesbank Chairman Jens Weidman spoke last week of measures being required to temper the strength of the euro. This week’s ECB meeting is therefore of more interest than usual in its potential to be a market moving meeting.

To read the rest of the report, please click here 

Posted by David Hufton