With Egypt's stock market jumping its most in a year and US equities exuberant over the bad data this morning, it seems the world is ready to ignore Egypt for now. Of course, as we noted here [3], there are some growing concerns about what is possible and probable should the coup occur. Suez Canal closure fears and US infrastructure problems have smashed WTI crude prices above $99 - its highest in over 9 months - and overlaying the lagged retail price shows we could see near $4.00 gas at the pump by August. As a gentle reminder of why US equity investors should care... there's something scary about the $3.80 level [4].
Given historical correlations (and in this case we pre-suppose that correlation is causation), it appears gas prices are set to jump notably in the next month...
[5]
and as we noted previously [6], that will cap P/E ratios (which will hurt stocks in a dismal earnings environment)...
[7]
Charts: Bloomberg