The World Is Turning Ugly As 2016 Winds Down

The negative reverberations in our current economic and political environment are becoming so strong that it is impossible for people to not feel at least some uneasiness in their gut. We imagine this is the same kind of sensation many felt from 1914 to 1918 during World War I and the terrible birth of communism, or perhaps in the early 1930s at the onset of the Great Depression and the rise of fascism. Some global changes are so disturbing that they send shockwaves through the collective unconscious before they ever hit the mainstream. People know that something is about to happen, even if they cannot yet clearly define it.

Duterte Turns Back On US, Orders Philippines To Buy Weapons From Russia And China

In an abrupt departure from his nation’s longstanding military reliance on the U.S., Duterte said the Philippines would pursue "independent" policies separate from US interests in the region, and ordered his defense secretary to seek military gear from suppliers in China and Russia. In another dramatic shift, he also said that the Philippines would stop patrolling the South China Sea alongside the U.S. Navy, to avoid upsetting Beijing.

Oil Pumps'n'Dumps As Algos Fight Over Distillates/Gasoline Inventories Surge & Surprise Crude Draw

Following last week's Hurrican Hermine-inspired collapse in crude inventories (and API's disapponting build), DOE surpreised with another (small) inventory draw (559k barrels). However, machinese were confused as the week saw major builds in Gasoline (most in 2 months) and Distillates (most in 8 months). Crude production rose  (+0.4% WoW) for the first time in 4 weeks further confusing the algos. Prices initially kneejerked higher but the product build and increased production sparked panic-selling once $45 stops had been run...

Global Market Rout Abates As Bond Selloff Pauses, Oil Rebounds

After a sudden rout in financial markets that wiped $2 trillion in global market cap over the past week showed signs of easing, overnight stocks tried to stage another "BTFD-type" comeback with European stocks climbing for the first time in five days as oil and metals prices gained. S&P futures were modestly in green, although they faded earlier gains, on the back of a slide in the USDJPY which initially spiked to 103.31 only to fade back to the mid 102-range.

Crude Chaos Strikes On Disappointing Post-Hurricane Rebound In Inventories

Following last week's epic crude inventory drawdown, the market expected a post-hurricane build of 4mm barrels, but API reported a mere 1.4mm build. However, a massive build in Distillates inventories (+5.3mm - biggest in 8 months) confused the machines. WTI had fallen back to a $44 handle - erasing all the inventory-draw-spike gains - before API data hit; but then spiked to last week's API levels, tumbled, then spiked again...

Dow Futures Slide Over 100 Points Despite Fed's Dovish Relent; Oil Drops On IEA Pessimism

After yesterday's torrid rally, which sent stocks higher the most in 2 months on the back of Lael Brainard surprisingly dovish comments, we have seen an unexpected profit-taking session overnight in ES, with US equity futures down 0.6%, driven largely by a renewed drop in oil prices which slid after the IEA said a surplus in global markets will last longer than initially estimated, persisting well into 2017 as reported previously.

Oil Slides After IEA Turns Pessimistic, Sees Oversupply Extending On "Dramatic Deceleration" In Crude Demand

Earlier today the IEA revealed a much more pessimistic outlook on the state of the oil market, predicting that a sharp slowdown in global oil demand growth, coupled with ballooning inventories and rising supply means the crude market will be oversupplied into late 2017. The reason: a "dramatic deceleration in China and India” this quarter coupled with “vanishing growth” in developed economies.

GoldCore's picture

Gold consolidated after the gains of last week when gold rose 0.25% from $1324/oz to $1328.80/oz. Indeed, it was gold’s second consecutive weekly higher close which is bullish from a technical perspective. Markets being sentiment and momentum driven this could mean the recent correction is over as technical driven traders are likely to take signal from this and go long gold.