Technical & Fundamental Oil Reports Specialists

Follow us

Risk appetite on the front foot

Published Monday, November 2nd, 2015

A soft ending to the month failed to dent what were solid gains made by global equities indices in October as central bank policy took centre stage and ultimately bolstered demand for risk assets. Indications that the guardians of monetary policy would for the most part stick to their hitherto accommodative stance helped stock markets post their best monthly performance in four years with added impetus also coming from largely positive US and European corporate earnings. Shares on Wall St and in the eurozone clocked up gains of more than 8% with bourses in Asia even more buoyant as Japan’s Nikkei and China’s Shanghai Composite surged 9.7% and 10.8% respectively.

The risk-on environment however came amid a month plagued by growing signs of global economic malaise. Proceedings got underway on an unexpectedly sour tone with downbeat PMIs and a surprisingly weak US non-farm payroll report showing only 142,000 jobs were created in September with even fewer registered in the preceding month. A decline in US industrial output also disappointed as did evidence of meek inflationary pressures with figures revealing that US consumer prices recently suffering their biggest drop in eight months. The housing sector was one bright spot for the world’s biggest-economy but the challenging outlook was confirmed by a first estimate of US 3Q GDP which came in slightly below expectations at 1.5% and significantly down on 2Q’s 3.9%.

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.