Archive - Nov 13, 2015

In true stop-running algo common sense, WTI crude jumped overnight, back above $42 briefly. However, a double whammy of warnings from IEA (of a "massive cushion" of 3 billion barrels worldwide) and the highest volume of supertankers for this time of year since 2013 has sent crude sliding back below $42.

Where did Europe's Q3 weakness come from? It was broad based and pronounced led by Germany, the currency area’s exporting powerhouse, while Italian economic growth also eased. There were fresh contractions in Greece, Finland and Estonia, while Portugal’s economy stagnated.

In the latest attempt by Washington to prove that the US isn't entirely useless in the fight against terrorism, The Pentagon cliams an MQ-9 reaper drone strike likely killed "Jihadi John," the Kuwaiti-born Brit who became the early face of ISIS after appearing in a series of beheading videos depicting the death of Westerners. 

For once, the overnight session was not dominated by weak Chinese economic data (which probably explains why the Shanghai Composite dropped for the second day in a row, declining 1.4%, and ending an impressive run since the beginning of November) and instead Europe took the spotlight with its own poor data in the form of Q3 GDP which printed below expectations at 0.3% Q/Q, down also from the 0.4% increase in Q2, with several key economies rolling over including Germany, Italy, and Spain while Europe's poster child of "successful austerity" saw Q3 GDP stagnate, far worse than the 0.5% growth consensus expected.

Amid the carnage in Macy's, Nordstrom, and JCPenney, one could be forgiven for expecting a weak retail sales print and sure enough...

There’s no reason to sweat a drop in the gold price or cheer a rise.