Technical & Fundamental Oil Reports Specialists

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Oil prices still under pressure

Published Monday, October 27th, 2014

Stock markets recovered their nerve last week finding solace in the fundamentals of solid corporate results. After all, that is all that really matters to investors in equities; what were the results in the last quarter, how do they compare to historicals and expectations and what is the guidance going forward? On all of these points investors were broadly re-assured, notwithstanding the wall of macro worries that surround the market.

The S&P had its best weekly gain for almost two years and is now only 4% off its highs again. Even Europe and Asia turned in gains with the Eurofirst 300 up 2.5% and the MSCI up 3.1%. Investors responded to facts on earnings and revenues rather the general alarm signals coming from Ebola, the eurozone and Russia.

Taking the latter first, the Russian stock market lost 3.4% last week and the rouble closed on Friday 22% down on the year. Russia’s budget is based on oil at $100 bbl, its credit rating is one above junk and on negative watch and Russia’s own Economy Minister warns that growth will be negative next year. President Putin is not going to take all of this lying down.

to read the rest of the report, please click here 

Posted by David Hufton