Stocks across the board, and US equity futures are broadly in the green this morning as markets shrug off the terror-related events in the NYC area over the weekend. There wasn’t a single positive ‘reason’ for the green price action but the bond ‘tantrum’ that caught the attention of stocks beginning back on 9/8 is increasingly fading and investors are hopeful this week’s central bank decisions (BOJ and FOMC both on Wed 9/21) will further ease yield anxieties.
One of the catalysts for the rebound in stocks was today’s rise in oil, which rebounded from Friday’s lows as renewed clashes halted what would be the first crude shipment from one of Libya’s largest export terminals since 2014. The tanker Seadelta suspended loading after fighting started Sunday between local Petroleum Facilities Guard units and forces loyal to eastern-based military commander Khalifa Haftar. Brent added 1.3 percent to $46.36. OPEC may call an extraordinary meeting if ministers reach consensus at an informal gathering next week, Secretary General Mohammed Barkindo said, according to Algerian Press Service.
‘Sentiment is being boosted by a rebound in oil,’ Vasu Menon, VP at Oversea-Chinese Banking Corp. in Singapore told Bloomberg. ‘Investors are also hoping the BOJ will do something more dramatic though I don’t think that’s going to make a lot of difference. With inflation numbers picking up a little bit in the U. S., the market will start worrying about the Fed again at some stage down the road.’
This post was published at Zero Hedge on Sep 19, 2016.
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