18/03/2016 - 06:01

Commodities Rally as Yellen Revises US Interest Rates.. Is this Just The Start?

18/03/2016 - 06:01

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Global markets rallied last night, as the USD continued to fall and commodities rebounded. Emerging Markets rallied and Crude Oil hit $41.00/barrel, a level not seen for over 6 months… But is this just the beginning? Combined with a strong Feb Business Survey, we could now see a sustained rally back towards 5,500 level…. Happy Friday…

Good Morning,

Happy Friday.

So Yellen pushes back her interest rate revisions and as we thought, commodities jumped, while emerging markets closed +3.6% last night…

Good news….

To add to last night’s “ammunition” was the Philadelphia Fed Business Survey, which surged +12.1 points…. a strong leading indicator for the economy.

* Dow Jones +155 points

* SP500 +0.66%

* Crude Oil +4.42%

* Emerging Market Index +3.6%

“This is a strong rally and the main catalyst is the return of easy money,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “The Fed announcement yesterday was the latest sign that central banks are going to continue with stimulus. This is putting downward pressure on the dollar, which favours commodities.”

Overall, we should have a great day…

Yesterday in Oz, it was the blue-chips such as BHP, RIO, WPL, STO and The Banks which drove the market higher…

It appears that as US interest rates won’t rise as fast as first predicted, if we have more “earnings certainty”, there is no reason why the XJO shouldn’t rally back towards 5,500 points over the next month…

TLS is in the spotlight today after “apologising” for their outage………

Will this have an affect on its stock price today?

Very likely………..

The SPI is up 33 points this morning

 

Niv

Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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