Oil Off to a Turbulent Start in 2016 -DW
Oil prices have been extremely volatile since the first trading day of 2016 and hit 12-year lows last week with Brent dropping below $33 a barrel for the first time since 2005. The fall in the Chinese manufacturing index, the Saudi-Iran standoff and North Korean nuclear test have all had a significant impact on shaping oil price trends, says market analyst and consultant Douglas-Westwood (DW). Brent crude rose to a three-week high of $38.91 a barrel on January 4 as a consequence of the Saudi-Iran geopolitical risk but these gains were quickly diminished due to concerns over economic slowdown. Rising tensions in the Middle East typically trigger an increase in the price of oil, yet it seems that bearish sentiment elsewhere has prevailed over potential risk.
Wall St Stabilizes After 6 Days of Gains, Energy Sector Advances
U.S. stocks ended little changed on Monday in a quiet session, as investors saw little reason to continue buying on Wall Street after a winning streak of six days of the S & P 500, although the activity mergers and acquisitions boosted the energy sector. * The S & P 500 halted its longest streak profit since mid-April, after hitting session highs on Friday, with the Dow Jones. Investors await catalyst to continue the progress, but the upward trend is seen Wall Street largely intact. * Sales of U.S. existing homes rose in May at a rate more than double than expected, while the preliminary reading of manufacturing index hit its highest level since May 2010.
