Month: February 2012

The perception of an impending deal with Greece is apparently upstaging a downgrade, and permitting continuation of an upward move commenced off the February 2nd, posting of the 95.44 low. With the Bank of Japan adopting stimulative monetary policy, a mind-set seems to be forming that policymakers will continue to print money until a sustainable recovery catches.… Read more

The Greek debt deal may address some structural issues that are central to their fiscal reality, including some measures that may actually improve competitiveness, but in the near-term, there can be little good that comes from more austerity. Greek countrymen cast their votes in the streets, a foreshadowing of more to come, perhaps.… Read more

A resolution to Greek debt woes, moved away again as EU overseers declared to Athens that the painfully wrought austerity measure did not go far enough, and giving them until next week to find an additional 325MM euro in savings before the latest tranche of aid is disbursed.… Read more

First, the inventory reports. Bearish, despite the small crude oil stock build. The demand numbers for distillates and gasoline continue to be poor, and the rise in inventories in those categories fosters the negative outlook. Otherwise, the market keeps tipping in the direction of headlines.… Read more

What was that?! Crude oil was slowing making its way to a test of technical support when a wave of buying hit. In just an hour between about 10:00AM and 11:00 AM US Eastern time, prices jumped almost $2.00 and over 100k lots traded.… Read more

The referee has to stop this fight. The potential for Greek GDP growth is being beaten to a pulp. The Troika, ( EU/IMF/ECB), required Greece to tighten austerity measures even more in order to tap into the new bailout fund. Its creditors reaction to a Greek commitment to eliminate 15,000 government jobs in 2012 has been unenthusiastic, but prompted Greeks into the street.… Read more

Europe’s conundrum will just not go away. Nor is an 8.3% unemployment rate, four years on from a recession any reason to celebrate either. The “Blinding Glimpse of the Obvious” award goes to the IMF which stated that China’s annual economic growth could be cut nearly in half this year if Europe’s debt crisis tips the world economy into a recession.… Read more

Growing stockpiles and numbers of initial filers for unemployment benefits every week is not producing a lot of confidence for offsetting demand. The non-farm payrolls report, later this morning, will have to be considerably beyond expectations to reverse the market’s growing downward momentum.… Read more

Generous additions to stocks, recorded by both API and EIA added to the souring sentiment already extant after disappointing European debt machinations. Even a strong euro, and bright PMI readings were not enough of an offset. Iran has moved back into the shadows for the moment with postponement of a European embargo until mid-summer.… Read more

Chancellor Merkel again wins the quote of the day award, commenting that “Considering the time frame, this was a real masterpiece.” Say what?! The 16th summit over two years accomplished exactly nothing in resolving the European malady. The bond vigilantes may not hold policymakers’ work in such high regard.… Read more