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Fri, 26th May 2017

Anirudh Sethi Report

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Archives of “May 19, 2017” Day

OPEC panel currently discussing deepening and extending oil output cuts

OPEC panel ahead of next week’s meeting in Vienna

  • panel meeting to discuss ways to bring inventories down
  • will conclude meeting later today (Friday) after scheduled talks with non-OPEC countries

Reuters story quoting “sources”

The two-day meeting has been extended into today with one of the sources saying:

We have not agreed on final scenarios

Recent reports have the Saudis and Russians looking for 9-month extensions but still to be approved at the full OPEC/non OPEC meeting on the 25th May.

WTI currently $50.33 on the rise from $49.80 . Brent $53.16 from $52.60

USDCAD falling to session lows of 1.3582. Recent demand notable down here.

 

Both ECB And BOJ Are Just Months Away From Running Out Of Bonds To Buy

With the Fed contemplating whether to hike again next month and start “normalizing ” its balance sheet before the end of 2017, the two other major central banks are facing far bigger problems.

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Two months after the BOJ quietly started tapering its QE program, when it also hinted it may purchase 18% less bonds than planned…

… Governor Haruhiko Kuroda admitted last week that the Bank of Japan’s bond holdings are currently growing at an annualized pace of only ¥60 trillion ($527 billion), 25% below the bottom-end of its policy range, and confirming that without making any formal announcement, the BOJ has quietly followed the ECB in aggressively tapering its bond buying program.

Overnight US Market :Dow closed + 56 ,Nasdaq up 44 ,S&P 500 closed up 9 points

Still not fully out of the woods after sharp fall yesterday

The major US stock indices are ending the session with modest gains after yesterday’s tumble, BUT levels are still off the afternoon corrective highs.
  • S&P is ending the day up 8.71 points or +0.37 points at 2365.74. The high reached 2375.74 in afternoon trading. The close is higher BUT it failed to close back above the 50 day MA at 2369.37. In that respect, it is a bit of a disappointment and the technical bias is a bit negative.
  • The Nasdaq is ending the session at 6055.129, up 43.89 points or 0.73%. The afternoon high reached 6073.45.  The low reached 5996.816.  Overall, closer to the high but the 1% gains seen earlier in the day  were not sustained.
  • The Dow is ending at 20663.02, up 56.09 points or 0.27%. The high reached 20759.20 in afternoon trading, the low traded to 20553.45.