Oil Over A Barrel â›˝ BOJ Urges Monetary Caution đź’´

by | 17 Jan, 2019

 

1. Oil Over A Barrel 

Oil prices faltered this morning as new data showed US crude production levels hitting an unprecedented 11.9 million barrels per day, topping the previous records set in December. So much for production cuts!

While OPEC members and Russia have been taking measures to cut production levels to buoy cascading oil prices, the US has been letting the team down by merrily posting new records week on week.

Output in the US has soared by 2.4 million barrels per day in the space of one year. However, the drop in price was not caused by higher oil output, but rather higher petrol inventories. A higher than expected build-up of petrol inventories spiked fears of weakening demand in the US market, causing trades to sell-off early this morning.

US West Texas Intermediate briefly slipped 0.6% to $51.27 before balancing out just below the $52 mark. Some analysts are worried that weakening demand could dampen oil’s comeback from its December lows.

Counteracting forces from OPEC cuts and US output increases throws a curve-ball into the oil markets. The result will likely be a sideways battle between buyers and sellers until one or the other gives way. Hold onto your hats, people, it may get bumpy!

 

2. BOJ Urges Monetary Caution

Japan’s central bank governor, Haruhiko Kuroda, sent out a chilling warning about the use of unconventional monetary policy this morning, urging central banks to weigh up the impacts carefully. Let’s hope they all had their hearing aids turned up.

He warned that the combination of a low interest rate environment and ageing populations leads to a stagnation of credit demand, pushing banks to pursue more risky investments to meet yield targets.

In a recent seminar, Kuroda warned global leaders that Increased capital flows into emerging markets and firms with greater credit risks could make the entire global system less stable. And he’s not wrong there!

Kuroda acknowledged Japan’s rapidly ageing population, but has put some innovative solutions, such as negative interest rates and the purchasing of risky assets in place to maintain stability.

Japan’s 10yr bond yield has returned to a positive yield after briefly flirting with negative territory. However, should global growth and credit demand continue to decline as Japan’s population increases, its 10yr yield may head back into the red.

Remember, you have been warned.

Today we are watching…

1. PPG Industries (#ppg)

US Chemicals producer, PPG, is set to post its earnings today, and its looking a bit grim. The share is down 14.53% in the last 52 week period, and analysts have revised their earnings and revenue estimates lower than Q4 last year. It’s current rating is neutral with most analysts predicting a poor result. However, the market has been known to throw us a curve-ball every so often.

2. M&T Bank Corp (#mtbank)

M&T is showing some good signs of a potential earnings beat today as analysts upgraded their estimates in the earlier part of this week. Banking stocks have performed well this week which will also boost investor optimism in M&T. The stock has also bumped up 2.23% this week ahead of the announcement. The earnings per share number to beat is $3.54. Let’s see if they can pull it off.

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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