World Themes This Week
We’re kicking off this week with a bang as oil markets surge on tight supply, the IMF lines up its spring meeting and the S&P looks to maintain its bullish momentum. Who’s up for it this week?
Oil markets blew past the $70 per barrel mark this morning to a new 5-month high, lifted by the recent escalation in fighting in Libya which threatens to disrupt supply. This only adds to a tightening market, fuelled by OPEC supply cuts, sanctions on Iran and Venezuela and upbeat demand-side sentiment from the recent US jobs report.
The IMF is scheduled to begin its spring meeting tomorrow in Washington with some important economic data. Investors will be watching closely for any alarming forecasts that could dampen the recent bullish sentiment that has been dominating markets of late.
US-China trade negotiations will continue this week with positive developments likely to drive growth is slightly riskier sectors and asset classes. Comments by White House Economic Advisor, Kudlow, suggest the deal may be in its final stages…so be on the lookout for announcements!
The S&P 500 notched up 1.39% last week thanks to a number of strong fundamental and technical signals from the US economy and global markets. The index is fast approaching its all-time high, and may look to break new ground in the not too distant future if strong data continues to filter into the economy.
It’s go time, people!