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Oil

Global Markets

Strong Appreciation Of U.S. Dollar After Fed Rate Hike Hits Raw Commodity Sector

The feature in the marketplace Thursday is a surging U.S. dollar index that soared to a 13-year high overnight. The greenback is the beneficiary of a U.S. interest rate hike on Wednesday that was accompanied by a surprisingly hawkish tone on monetary policy from the Federal Reserve. There is now talk the Fed could raise interest rates up to three times in 2017.

Victims of the sharp appreciation of the U.S. dollar are raw commodity markets that are priced in U.S. dollars on the world markets, including gold

Global Markets

World Markets On Hold Ahead of FOMC Decision

World stock markets were mostly weaker in subdued trading Wednesday. U.S. stock indexes are pointed toward narrowly mixed openings when the U.S. day session begins.

The marketplace later today gets the results of what is arguably the most important economic event of the month: the U.S. Federal Reserve FOMC meeting, which began Tuesday morning and ends Wednesday afternoon with a statement. Fed Chair Janet Yellen will also hold a press conference after the statement is released at 2:00 p.m. EDT.

Most believe the Fed will raise interest rates for the first time in a year.

Global Markets

World Stock Markets Mostly Up Tuesday; FOMC Meeting Set To Begin

The marketplace is awaiting what is arguably the most important economic event of the month: the U.S. Federal Reserve FOMC meeting, which begins Tuesday morning and ends Wednesday afternoon with a statement. Most believe the Fed will raise interest rates for the first time in a year.

In fact, the Fed funds futures market shows a 100% chance the Fed will raise U.S. interest rates this week. With a Fed rate hike so fully expected, markets have mostly factored it into their price structures.

Thus, don't be surprised to see many markets show a "buy the rumor, sell the fact" scenario following the actual announcement of the Fed rate hike.

Oil

Forecast: There Are Big Changes (and Big Profits) Coming to the Oil Sector in 2017

Late in the summer of 2016, I predicted that crude oil prices would be in the mid-$50s by the end of 2016, and the low $60s by the first quarter of 2017.

And at the start of the week of Dec. 12, 2016, West Texas Intermediate sits at just under $54. Frankly, I'm not seeing anything in the market that would force me to revise my forecast right now. 

But make no mistake: There is a change underway right now that will only accelerate in 2017. The "rising tide" of crude prices will not "lift all boats" equally. I'm predicting that investors will see some big shifts in the oil markets and where their profits come from.

You see, the source of global oil demand itself is refocusing, and that's where we'll see the biggest changes.

Some players will lose out: The traditional high-dividend "supermajors" – BP, Chevron, ExxonMobil, Royal Dutch Shell, Total SA, Eni, and ConocoPhillips – will see their long-term viability and short-term profitability severely challenged.

But nimble, globally oriented oil investors could see some of their biggest profits yet in 2017 from the places I'm about to show you...

Oil

Why the Price of Oil Today Hit a 2016 High

The price of oil today (Monday, Dec. 12) surged to a new record high in 2016.

The historic OPEC agreement reached last month led to a spike in the price of oil.

But oil prices today have continued to climb since the agreement. Here's why...

Crude Oil Prices Sharply Up As OPEC, Non-OPEC Producers Agree to Further Reduce Output

The feature in the marketplace to start the trading week is sharply higher crude oil prices. Nymex crude oil futures prices hit a 16-month high of $54.51 overnight and are up by over $2.00 a barrel in early U.S. trading.

OPEC and non-OPEC oil producers on Saturday came to an agreement to cut their collective oil production by just over a half-million barrels a day, which does not include the 1.2 million barrels a day that OPEC already agreed to cut in September. Reports said the combined cuts represent about 2% of the world oil supply.

World stock markets were mostly weaker Monday, on corrective, profit-taking pullbacks from recent solid price gains that put several world stock indexes at multi-year or even record highs.

Global Markets

World Stock Markets Higher As Trader/Investor Optimism Remains Generally Upbeat

World stock markets were mostly firmer overnight. European stock markets benefited in part from Thursday's European Central Bank meeting on monetary policy that was deemed dovish. Financial stocks in Europe have posted decent recoveries recently. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The Dow and S&P 500 stock indexes have hit record highs this week on ideas world economic growth is on the upswing and will continue on that path in 2017.

In overnight news, China's consumer price index in was up 2.3% in November, year-on-year, while the producer price index was up 3.3% in the same period.

Global Markets

Markets Subdued Overnight, Awaited ECB Meeting, Draghi Press Conference

World stock markets were mostly higher in quieter overnight trading, following Wall Street's solid gains on Wednesday that produced record highs in the Dow Jones Industrial Average and the S&P 500 indexes. Asian shares were supported in part by the appointment of Iowa Governor Terry Branstad as ambassador to China. Chinese officials called Branstad "an old friend." U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

Traders and investors were awaiting the results of Thursday's regular meeting of the European Central Bank.

Global Markets

World Stock Markets Mostly Firmer; ECB, FOMC Meetings On Deck

Global stock markets were mostly firmer overnight, following the lead from New York’s higher close Tuesday. The Dow Jones Industrial Average this week hit has hit a record high. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

Gold prices are higher in early U.S. trading on a short-covering and bargain-hunting bounce following recent selling pressure that drove prices to a 10-month low this week.

In overnight news, U.K. industrial output in October was reported down 0.9%, month-on-month and down 0.4%, year-on-year. That was a big miss to the downside from market expectations.

Global Markets

World Stock Markets Firmer Tuesday, Led By Wall Street and Dow's Record High

Global stock markets were mostly firmer overnight, following the lead from New York's higher close Monday, where the Dow Jones Industrial Average hit another record high. European and Asian financial shares showed some recovery from recent losses, amid Italy's "no" vote on constitutional reforms.

Asian stock markets were also lifted on relief that the Italian no vote did little to rile the world marketplace. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

In overnight news, the Euro zone third-quarter gross domestic product was reported at up 0.3% from the second quarter and was up 1.7%, year-on-year.