Market action was off to a bit of a slow start for the week as New York session traders were probably busy getting ready to witness the solar eclipse. U.S. equities still managed to score some gains but the dollar was weighed down by resurfacing tensions with North Korea and within the White House.
- Canadian wholesale sales down by 0.5% vs. projected 0.6% gain
- Petro-Logistics SA: OPEC oil supply to fall by 419K barrels in Aug
Geopolitical risk returning?
After staying out of the spotlight for the past few days, tensions with North Korea appear to be returning to center stage as South Korea and the U.S. are starting joint military drills this week.
If you recall, North Korean leader Kim Jong Un has mentioned that they will wait and see what Uncle Sam’s next moves might be before deciding on whether or not to pull the trigger on a missile strike. These drills are scheduled to take place until the end of the month, so it’s likely that market watchers will keep close tabs on any headlines from Pyongyang related to this event.
On the home front, it appears that the drama in Washington still ain’t over as the resignation of Trump’s chief strategist Bannon prompted speculations that other senior officials are also looking to jump ship. This could weaken the administration’s push for fiscal reform yet a couple of U.S. stock indices still managed to close in the green.
- The Dow 30 index was up 29.24 points to 21,703.75 (+0.13%)
- The S&P 500 index closed 2.82 points higher to 2,428.37 (+0.12%)
- The Nasdaq was down 3.40 points to 6,213.13 (-0.05%)
OPEC output down, compliance up
According to a report from oil tanker tracker Petro-Logistics SA, OPEC output is slated to fall by 419,000 barrels per day in August, easing global oversupply concerns. This would mark the cartel’s largest reduction in five months after hitting a high point in the previous month.
Furthermore, the Joint Technical Committee of OPEC and non-OPEC nations is expected to report 94% compliance for July among member nations who agreed to cap production until March 2018.
- WTI crude oil is up to $47.69 per barrel (+0.34%)
- Brent crude oil is up to $51.77 per barrel (+0.21%)
Major Market Mover(s):
The scrilla crawled slightly lower against its peers at the start of the week, with traders pricing in a fresh batch of political concerns following Bannon’s resignation and the start of military drills between U.S. and South Korea.
EUR/USD is up from the 1.1750 area to a high of 1.1828, USD/JPY retreated to 108.89, GBP/USD pushed past the 1.2900 barrier to a high of 1.2916, and USD/CHF bounced back to .9625.