Technical & Fundamental Oil Reports Specialists

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Bluff or blink?

Published Thursday, May 8th, 2014

It looked as though Janet Yellen’s testimony to a congressional committee was going to be the big event of the day but President Putin came in to claim pole position. He surprised everyone by asking separatists in eastern Ukraine to postpone their referendum, by saying Russian troops were withdrawing from the Ukrainian border and by appearing to partly endorse Ukrainian presidential elections to be held on May 25.

Has he blinked? Has the threat of economic sanctions and long-term damage to Russia’s energy sector done its job? One thing is clear, his popularity rating will not remain at 82% if Russia tumbles into recession. Whatever has prompted the apparent U-turn it pleased the markets. The Micex closed 3.6% higher and the rouble gained 1.3% against the dollar.

Janet Yellen also delivered good news. She told congressmen that the US economy still needed “a high degree of monetary accommodation” because there is “considerable slack in the labour market” and weakness in the housing market is a fresh risk. The S&P and Dow ended the day higher and so did oil but for different reasons.

to read the rest of the report, please click here 

Posted by David Hufton