Exxon

US Futures, European Stocks Rise Despite HSBC Plunge; Dollar, Oil Jump

European stocks rose again with S&P futures higher, while Asian stocks were mixed. The dollar rose jumped on hawkish comments by Philly Fed's Harker, oil rose following optimistic OPEC comments, while gold dropped. Markets have largely ignored results by financial heavyweight HSBC, which posted its largest fall since mid-2015 after reporting a 62% plunge in pretax profit.

Russia: "The New American Leaders Are Repeating Obama's Mistakes"

“I heard nothing in the speech” that was positive, Konstantin Kosachyov, who heads the Russian parliament’s foreign affairs committee, said of Pence quoted by Bloomberg. “The new American leaders have started to reproduce the negatives that accumulated under the previous administration.”

Passing On The Permian: Has The Bubble Grown Too Big?

Has the Permian Basin become too hot? More companies and enormous sums of capital continue to flood into West Texas to take advantage of the most prolific shale basin in North America. But rising oil prices might have a counterintuitive effect on the Permian...

US To Sanction Venezuelan VP For Being "Drug Kingpin" As Socialist Utopia Resorts To Eating Flamingoes

After years of investigations over alleged drug-trafficking and money-laundering, Venezuela's vice-president Tareck El Aissami faces sanctions by US authorities as a "specially designated national." El Aissami would be the highest-ranking Venezuelan official hit by U.S. sanctions, and we are sure will warrant a furious response from President Maduro who has already accused US of 'economic war' numerous times... and being responsible for forcing his people to resort to eating flamingoes now.

Putin's Tough Choice: China Or The West

Will Putin cave in to the demands of the West to renounce his (China/Iran) allies in exchange for the improved relation and the dropping of sanctions?

Frontrunning: February 2

  • Futures fall as Fed gives no clarity on next rate hike (Reuters)
  • Yellen Eyes Commercial Real-Estate Froth as Fed Weighs ’17 Risks (BBG)
  • Trump Slams ‘Dumb Deal’ With Ally Australia After Testy Call (BBG)
  • For Many Firms, Trump Dominates Earnings Calls (WSJ)
  • Trump’s Blue-Collar Populism Is Dividing Unions (BBG)

Senate Confirms Rex Tillerson As Secretary Of State

The Senate has confirmed Rex Tillerson as secretary of state in a narrow vote that was among the most contentious for that role in recent history. Tillerson surpassed the 51 votes needed, enough for a simple majority to approve his nomination.

Frontrunning: February 1

  • Fed Unlikely to Make Its Next Rate Move Wednesday (WSJ)
  • Conservative Gorsuch nominated to top court (Reuters)
  • Gorsuch Is Critic of Legal Doctrine That Bolsters Executive Authority (WSJ)
  • The 4 Rules That Will Explain Neil Gorsuch’s Confirmation Fight (Politico)
  • Trump’s Yen Comments ‘Wide of the Mark,’ Says Japan FX Chief (Reuters)
  • A barb at Germany puts Trump administration on collision course with EU (Reuters)

Futures Fall On Rising Trump Uncertainty; Europe Stocks Rise As Euro-Area Inflation Surges

European bonds fell and stocks rose led by banks and retailers as surging inflation data prompted investors to switch into reflationary assets even as speculation about ECB tapering has returned. Asian stocks and US equity futures declined. The Yen and gold advanced after Trump’s firing of the U.S. acting attorney general added to concern over the unpredictability of decisions in the new administration.

Key Events In The Coming "Big Week" For The US

Markets will again zero in on the U.S. this week, and not just because of Donald Trump. The Federal Reserve meeting and nonfarm payrolls may set a clear direction for dollar and yields for the next few months. Other key releases include ISM, ADP, housing data, personal income & spending, vehicle sales and core PCE.