Crude

Global Stocks Drop; Futures Hints At Longest Losing Streak Since December 1980

With yesterday's, 8th consecutive decline for the S&P 500, the US equity market has now posted the longest losing streak since October 2008; and should we close payrolls Friday day with another negative print, it would be the longest negative streak since December 1980. Putting the recent slide in context, stocks are now down compared to a year ago, and are unchanged since December 2014.

Frontrunning: November 3

  • Cubs Win 1st Series Title Since 1908, Beat Indians in Game 7 (BBG)
  • Trump, Clinton blast each other on character; Clinton rises in poll (Reuters)
  • Trump-effect grips world stocks, dollar (BBG)
  • No Brexit without Parliament approval: High Court (Reuters)
  • With Iraqi troops at Mosul's gate, Baghdadi promises victory (Reuters)
  • China Slowdown Deepens Looming Pension Crisis (WSJ)

US Futures Flat, Rebound From Session Lows On Rising Election Jitters

Asian stocks, S&P futures and European shares trade flat as a tightening race for the U.S. presidency spurs demand for haven assets including the yen while weighing on stocks and Mexico’s peso. A turbulent overnight session saw some early risk off following the plunge in Facebook shares and the Fox News report that an FBI probe into the Clinton foundation may lead to a "likely indictment."

Fed Holds, Says Case For December Hike "Strengthens"; No Mention Of Election; 2 Dissent

While the statement itself contained 7 fewer words than in September, there were virtually no changes. The most notable change in the wording was the remove of the phrase: "Inflation is expected to remain low for the near term"  and its replacement with "Inflation is expected to rise to 2 percent over the medium term."  The FOMC also said that "The Committee judges that the case for an increase in the federal funds rate has continued to strengthen" strongly hinting that a December hike is now almost inevitable absent a market crash.

Crude, Gasoline Tumble After Biggest Inventory Build In 8 Months

Following last week's inventory draws across the entire energy complex, API was expected to report a seasonally 'normal' 1.54mm barrel build but instead printed a massive 9.3mm build - the biggest since March. Distillates saw a 6th straight week of draws but Cushing saw the biggest build in 3 months. Gasoline saw the biggest draw in 2 months (-3.5mm) but RBOB prices are sinking along with WTI.