Technical & Fundamental Oil Reports Specialists

Follow us

Fed split over rate lift-off

Published Thursday, April 9th, 2015

Investor sentiment was once again at the mercy of the latest update on US monetary policy as market participants prepared to digest the release of minutes from the Fed’s March meeting. Although they revealed that a rate hike in 2015 remained on track, there was a definite lack of consensus over the month in which rate normalisation should begin. Several policymakers believed that a rise was warranted as early as June while others were less hawkish. They did agree on the improving outlook of the US economy despite evidence of a weak 1Q performance but warned of the impact of the strengthening dollar and subdued energy prices.

Risk appetite in Europe had been similarly undermined although this time by soft macro data which revealed that German industrial orders fell by 0.9% m/m in February and follows on from hefty 2.6% decline in the previous month. Eurozone retail sales also disappointed after easing 0.2% in February compared with January. Bulls were however given some reprieve after the announcement of the first mega-merger in the energy sector since oil prices began their nose dive last July as Shell agreed to buy its smaller rival BG Group in a deal worth $70 billion. Meanwhile, today’s trading looks likely to be dominated by Greece’s liquidity crisis as last week’s pledge of honouring all debt obligations faces its first major test with a €450 million loan repayment due to the IMF.

to read the rest of the report, please click here

Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.