Stock Rally Fades Along With OPEC Euphoria

Published 2016-09-29, 08:49 a/m

Yesterday afternoon's rally in North America worked it's way through world markets overnight with the ‎FTSE and Australia gaining 1.0% and the Dax rising 0.7%. A selloff in JPY following a poor retail sales report sent the Nikkei up 1.3%.

US index futures are flat this morning consolidating wednesday's late gains. ‎The energy sector had been the top performed and mainly responsible for the advance. WTI is down 0.5% this morning on a combination of enthusiasm over the OPEC deal fading with key details like production quotas for each country stil to be negotiated, and profit-taking against the news. Thew lack of follow through has caused a correction in CAD already overnight and could drag on energy stocks today.

Today brings another update of Q2 US GDP and another flurry of Fed speakers. With Q3 nearly over and the Fed unlikely to move until December after the US election, it would take a pretty major surprise to move the markets.

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