Sun, 28th May 2017

Anirudh Sethi Report


Archives of “Analysis” Category

Overnight US Market : S&P ,Nasdaq sets another record (what’s new?).

S&P ends up 0.44%. Nasdaq up 0.69%

Yes…it is another record for US stocks today.
  • The S&P is ending up 0.44% to 2415.07. The high reached 2418.71. The low 2408.01
  • The Nasdaq is ending up 42.234 points or 0.69% to 6205.25. The high reached 6217.34. The low 6174.52
  • The Dow is closing up 21082.95. The high reached 21112.32.  The low 21051.41.  The index was up 0.34% (closed at 21082.95).

Algerian oil minister loses his job during the OPEC meeting

Algeria cabinet shuffle takes place during meeting

Algerian oil minister Noureddine Boutarfa was informed that he will be replaced midway through today’s OPEC meeting.

As part of broader cabinet changes, Boutarfa was replaced by Sonelgaz CEO Mustapha Guitouni as energy minister. The moves follow a May 4 election.

The change is a loss for OPEC as Boutarfa was seen as a mediator and dealmaker. He was pivotal in brokering the initial OPEC/non-OPEC deal.

Bitcoin Explodes, Trades Above $4,000 In South Korea

In recent weeks it has been Japanese demand (and notable premia) that has driven the exponential rise in Bitcoin, but recently, as CoinTelegraph reports, it has been South Korea. Overenight saw Bitcoin prices explode once again, smashing through $2500, $2600, and $2700 for the first time…

As CoinTelegraph.com reports, South Korean Bitcoin traders are facing asking prices of $4,500 as the virtual currency’s price continues to surge.

Order books from domestic exchange Coinone list a current price of 4,254,000 won ($3805), with a 24-hour high of 5,025,000 ($4494).

Bitcoin Live Orderbook

Iraq say there is a proposal being discussed for 9 month extension and deeper cuts on oil output deal

latest comments from the OPEC/non-OPEC meeting 25 May

  • Iraq prefers 9 month at existing levels of output cuts though

Oil prices firming on the headline and other firmer tones from today’s meting now underway.

WTI $51.85 after testing $52.00

Other comments also coming thick and fast ( no oil pun intended)

Saudi Arabia;

  • no oil output cap for Libya, Nigeria
  • does not see shale derailing what we do

Other comments to follow once I’ve got UK GDP out the way.

Medals from Rio Olympics are Rusting, Chipping Will Be Replaced

Kyle Snyder's damaged gold metal from the 2016 Rio Olympics on Tuesday, May 23, 2017, in Maryland.As the hyper-expensive – and now empty – sports venues built by Brazil for the 2016 Rio Summer Olympics rapidly deteriorate, many of the medals won by the athletes who participated are now revealed to be decaying as well.

Due to defective workmanship and low quality materials used in their manufacture, at least 130 medals from the 2016 Summer Olympics in Rio have been documented as decaying, rusting or chipping, according to USA Today.

“We’re seeing problems with the covering on between 6 or 7 percent of the medals,” conceded Rio Olympic Committee communications officer Mario Andrada, who added that, “it seems to do with the difference in temperatures.”

Andrada asserted that the decay was “completely normal,” observing that a mere 1.34 percent of an Olympic gold medal is actually gold, and affirming that some 30 percent of what is claimed to be sterling silver is actually recycled silver.

The spokesman suggested that Olympic committee-authorized manufacturing and material was not necessarily at fault, as many medals “were dropped or mishandled, and the varnish has come off and they’ve rusted or gone black in the spot where they were damaged.”

FOMC meeting minutes: Balance sheet plan would raise rolll off caps every 3 months

Tightening likely appropriate soon” most Fed officials said

Other comments:
  • Prudent to only evidence a slowdown is transitory
  • Fed officials still saw gradual tightening as appropriate
  • FOMC expected consumer spending to rebound in coming months
  • Fed staff outline plan for gradual phaseout of reinvestment
  • Most Fed officials: inflation data reflects transitory factors
  • Nearly all Fed officials favorite staff proposal on rolloff caps
  • risks from some elevated commercial property values
  • a few Fed officials concern progress on inflation goal slowed
  • jobless rate of 4.5% at or below Fed officials long run levels
  • almost all Fed officials favor starting to shrink assets in 2017
  • deregulation could raise financial risks according to several Fed officials

The meeting minutes can be found here….

Overnight US Market :S&P closed at Record High

What sell-off? In a feat that has not been accomplished in more than a week, the S&P 500 on Wednesday notched a fresh record closing high.

The S&P 500 gained 0.25 per cent to 2,404, the Dow Jones Industrial Average added 0.36 per cent to 21,012.4, and the Nasdaq Composite gained 0.44 per cent to 6,163.

Last week, equities markets took a blow from rising concern over the political fortunes of US President Donald Trump.

Still, after Wednesday’s gains, the most recent bout of selling has been entirely reversed and then some. The S&P 500 index is up 7.4 per cent for the year.

Investors on Wednesday parsed through minutes from the Federal Reserve’s May meeting, which set the table for next month’s meeting, which could see it raise rates for the second time this year. Investors interpreted the news as dovish on margin, however, with the US dollar slipping 0.26 per cent against a basket of six peers.

The yield on the benchmark 10-year Treasury note fell 0.0298 per cent to 2.2502 per cent.