Technical & Fundamental Oil Reports Specialists

Follow us

A long and windy road begins with a precipice

Published Monday, January 11th, 2016

If the first week is anything to go by we are in for a long, volatile and very exhausting year. The week started on a bad note and ended on a good one but the market response, worryingly, was the same to both – sell, sell, sell. It was not meant to be like this. Last year was supposed to be one of stabilisation, when the rot was stopped. This year was going to be one of consolidation and slow but sustained economic recovery.

China has torpedoed the hopes of the optimists. The third leg of the financial crises involving emerging markets that the IMF, World Bank, BIS and various messengers of doom had warned of has come into play. In Monopoly terms the global economy has not succeeded in passing GO, it could still land on the recession square without the means of getting out.

Records tumbled everywhere. The worst 5 day start to the year ever for the Dow and S&P, the worst start to the year for the FTSE 100 since the index was created in 1994, a record low for the JP Morgan emerging market currency index, the shortest ever working day for the Chinese stock market closed by a circuit breaker now abandoned and a record low for the riyal/dollar in the forwards market.

to read the rest of the report, please click here

Posted by David Hufton