Daily Review – Wednesday 26-Oct-2016

Daily Review – Wednesday 26-Oct-2016

US – API Crude Inventories

The American Petroleum Institute (API) data recorded a massive inventory build of 4.8M barrels,  following a 3.8M draw the week before.

The price of WTI crude dropped 50 pips to $49.25 over the course of 30 minutes when the news hit the markets.

 

US – CB Consumer Confidence

The Conference Board Consumer Confidence Index broke its 3 months upward trend and now stands at 98.6 in October(1985=100), down from 103.5 in September.

 

US – Home Price Index M/M

US house prices rose 0.7% in August on a seasonally adjusted basis from the previous month.

From August 2015 to August 2016, house prices were up 6.4%.

 

US – Richmond Manufacturing Index

The FED of Richmond reported a score of -4 for October.

This is the third consecutive month of sub-zero numbers, but the index is on an upward trend compared with the previous two months.

 

US – IBD/TIPP Economic Optimism Index

For the first time since April 2015 the IBD/TIPP Economic Optimism Index ended with a score above 50, October recorded 51.3.

US consumers are turning upbeat as the presidential election campaigns is reaching its final stage.

 

Canada – BOC Governor Poloz Speaks

Bank of Canada Governor Stephen Poloz stated that Canada is in a very good fiscal situation and should not be worried about running up deficits in the short-term.

With this statement he basically supports the Canadian Government’s plan to run a deficit of 29.4B CAD to prop up the economy by spending it on infrastructure and a tax credit for families.

 

UK – BOE Gov Carney Speaks

Speaking before the House of Lords Economic Affairs Committee regarding the Brexit vote, Mark Carney argued that the monetary policy pursued by the BOE has had a positive impact that is “without parallel”, despite the Prime Minister using her speech to claim it had led to “bad side effects”.

Since taking office and the Brexit, Prime Minister Theresa May has been openly critical about the BOE’s monetary policy and its effect on the economy.

 

EU – ECB President Draghi Speaks

It seems that Central Bankers are taking a united stand against critics of their policies as Mario Draghi defended the ECB’s QE and interest policy in Berlin yesterday.

“We have every reason to believe that, with the impetus provided by our recent measures, monetary policy is working as expected: by boosting consumption and investment and creating jobs, which is always socially progressive,” the ECB president said.

 

EU – German Ifo Business Climate

The Munich based Ifo institute said its business climate index climbed to 110.5 from 109.5 in September, the highest level since April 2014.

 

Upcoming Data Releases

Wednesday 26 October will have the EIA’s Crude Oil Inventories, but that’s about as excited as it get. Let’s see if the EIA numbers are in line with what we saw with API yesterday.

Daily Review - Thursday 27-Oct-2016 Daily Review - Tuesday 25-Oct-2016