- OPEC agree 9-month extension but Oil looks lower
- US stock market rally continues with US30 breaking above 24k
- Bitcoin back under pressure and close to $9000
- Small rise in PCE sees Gold drop to weekly lows
- European inflation misses forecasts but EUR edging higher
As was widely expected, OPEC have announced this afternoon that their current supply cuts will be extended until the end of 2018. For the first time Libya and Nigeria will also be included in the measures to curb output. Whilst the reaction in the oil price to the meeting is yet to be confirmed for sure - OPEC and Russia are now discussing the non-OPEC cuts -the initial move has been lower with Brent falling by around half a percent to trade near its weekly lows.
The US stock market has moved higher once more today with the Dow Jones Industrial Average (US30 on xStation) moving above the 24000 handle for the first time ever. The market has been in a clear uptrend for quite some time now and there are some signs that the pace of the gains is increasing.
There has been a particularly tumultuous 24 hours for Bitcoin with the cryptocurrency 1st surging to a record peak above 11400 yesterday afternoon before plummeting back to the low 9000s. The market is looking vulnerable given the swift rejection that rallies have been met with of late and a break below 9000 may test the resolve of the crypto bulls.
On the data front this afternoon the latest inflation figures from the US have shown a small increase - as was expected - but the overall reading remains well below the 2% mandate set for the Fed. Gold dropped shortly after the release to its lowest level of the week and despite an attempt to move higher the precious metal was making new lows on the European close ahead of the Senate vote on the tax bill tonight.
This morning’s set of the macroeconomic data from the euro area economy seems to underline that the booming economy does not have to translate straightforwardly into the higher pace of price growth. Even as the labor market is getting tighter, it has yet to be able to bring about a more sustained increase in inflation. Despite this the Euro is making some steady gains and edging higher on the day.
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