Morning Report Thursday 11 December 2014
Yesterday, I touched on the current significant increase in volatility, especially in equity markets exposed to commodities. A characteristic of major turns, I believe this will be a top in the U.S. – even after last night’s drubbing the Dow is only 2.4% off all-time highs! The previous night, equities plunged in Europe on concerns around Greek elections and potential flow on effects, the Greek stock market fell 12.8%. Last night, all eyes returned to oil after OPEC reduced its estimates for 2015 demand, oil again plunged over 4% to 5 year lows, I am actually surprised this news created such a move, why else has oil fallen 43% in the last 7 months? We are in the “eye of the storm” of panic in this sector as OPEC, led by the Saudi’s, plays games with the market. People are now talking $US40-50 a barrel if OPEC does not remain united. One fact is catching my eye:
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