Open: London Session | Forex, Metals, Oil, Agriculture October 26, 2020



Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. Furthermore, the company benefits from very cheap borrowing costs and this deal will boost earnings by about a dollar per share. As U.S. inflation expectations have been climbing since March, U.S. real yields have fallen and that has helped ensure both that the dollar weakens and that global stocks strengthen.
Global equities are inversely related to the level of the dollar, in large part thanks to its function as a haven when investors are risk-averse. In the wake of this, the dollar weakens, and stock markets around the world take off. Even if we factor in a 30% tax rate, accretion is seen at a dollar per share after-taxes. The EU joined the flood last week with a 17 billion-euro deal, followed by Italy s seventh jumbo sale of the year.Today s AgendaAll times CET. If the U.S. equity market is hogging attention, something similar can be said about the dollar.
The most obvious is the dollar s role as a safe haven, as illustrated vividly in March. As Jones says: Crucially for the dollar, the Fed has accommodated this rebound.


The value of gold holdings was largely unchanged at $36.6 billion.


Notably, the consensus estimate for total hydrocarbon production is pinned at 2,436 thousand barrels of oil equivalent per day (MBoE/D), suggesting a drop from the year-ago quarter’s 2,568 MBoE/D. Also, the dip in oil prices is likely to have affected the integrated energy major’s total production volumes. Although the price of crude oil in the September quarter recovered sequentially, thanks to easing of social-distancing measures, the commodity’s price was below the year-ago quarter level.
EIA data showed a surprise build in gasoline inventories in the US last week, which weighed heavily on crude futures while also heavily impacting the gasoline complex. Everything is made in China these days, except for high-tech microprocessors, software, several internet giants, some pharmaceutical products, the Big Oil and the military hardware and defense production industry. The combination has nearly a million net acres in the premium Permian basin, with pro-forma production of 558,000 barrels of oil-equivalent per day.
After all, oil prices have recovered in a big way and this has already showed up a great deal in the second-quarter results. Parsley’s share of total production of 558,000 barrels of oil-equivalent per day is nearly 33%. Crude Value Insights offers you an investing service and community focused on oil and natural gas. For those in the oil and gas market, however, particularly on the E&P side, it is definitely toward the high end of the scale.

United States

Besides the Trump supporters in the United States, the far-right populist leaders in Europe are also exploiting popular resentment against free trade and globalization. If Trump could win the more conservative of Maine’s two districts, and the most liberal of Nebraska’s three districts, the election would be tied at 269. It also requires the Fed to keep real yields negative, in a way never seen before this year. The US election, where a Biden victory is still the predominant scenario according to the polls, is top of mind.
This has fed into a belief in a coming reflation trade, in which growth and inflation at last return after more than a decade. Wall Street typically suggests that, when crisis hits, investors bide their time because someday, perhaps years later, the markets will come back. Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis.
Back then, the momentum took Trump to victory, and bettors are extrapolating forward to reach the same result.
Thanks to the Fed, the good news on U.S. demand has buoyed stocks without being choked off by rising Treasury yields. The same is probably also true of the chances of an ultimate Trump victory.


Health authorities reported 137 new cases on Sunday, all of which were confirmed in Xinjiang Province, making this by far the largest new outbreak since the Spring. Chinese authorities are scrambling to suppress yet another outbreak in far-flung Xinjiang after a 17-year-old garment factory worker tested positive.


Turkish President Recep Tayyip Erdogan reiterated his criticism of France’s treatment of Muslims and repeated his call for French President Emmanuel Macron to get psychiatric help. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K. s departure from the EU.