Oil’s Roller Coaster

Highlights This Week

+  Investors will continue to watch oil’s roller-coaster and the continuing developments of the Greek negotiations. Traders will also be looking to see which central bank is next to loosen monetary policy, while earnings season slows down with only 2 of the 30 Dow components reporting during the week

+  In the previous week, oil witnessed a roller coaster ride dropping almost 9% in one day after a nearly 20% rise in the previous three trading sessions. Sectors such as energy have been moving higher on the oil increase, while airlines and cruise liners are seeing an inverse correlation. Traders will be looking to see where oil goes and if we have reached a floor with the price

+  Continued meetings between Greece’s finance minister and the Troika are determining Greece’s future and potentially the Euro’s future. Traders will continue to watch the progression of how these talks go. If talks go south or if news such as the ECB decision to stop funding Greece’s lenders comes in, expect a market sell-off. Conversely, if the parties do come to an agreement we should expect global markets to rise

+  Last week, Australia joined the currency wars with their central bank announcing an interest rate cut. The People’s Bank of China also announced a cut to a key lending rate. Traders will be watching to see which central banks are next in taking unexpected steps to devalue their currency and stimulate their economy

+  A number of Central Bank Presidents will be speaking throughout the week including two FOMC Members. Traders will be listening to see If they mention a timeline to potential rate increases or decreases after last week’s better than expected jobs number  

+  We have a light economic data filled week with Retail Sales and University of Michigan Sentiment among the key data driven points

 

      MONDAY (2/9)

  • Reserve Bank of Australia Governor Glenn Stevens speaks
  • FOMC Member Jerome Powell speaks
  • Earnings: Loews

TUESDAY (2/10)

  • 10:00 AM ET – Wholesale Inventories - Dec
  • 10:00 AM ET – JOLTS Job Openings - Dec
  • China CPI & PPI
  • National Australia Bank Business Confidence
  • Great Britain Manufacturing Production
  • French & Italian Industrial Production
  • FOMC Member Jeffrey Lacker speaks
  • Japanese Banks will be closed in observance of National Foundation Day
  • Earnings: Coca Cola, CVS, Reynolds American, KKR, Pacific Gas & Electric

WEDNESDAY (2/11)

  • 10:30 AM ET – Crude Oil Inventories
  •  2:00 PM ET – Treasury Budget – Jan
  • People’s Bank of China New Loans
  • Earnings: Pepsico, Cisco, Baidu, Time Warner, Metlife, Thomson Reuters, Applied Materials, Tesla

       THURSDAY (2/12)

  • 8:30 AM ET - Weekly Jobless Claims
  • 8:30 AM ET - Retail Sales - Jan
  • 10:00 AM ET - Business Inventories - Dec
  • Australia Unemployment Rate and Employment Change
  • German Final CPI
  •  Bank of England Governor Mark Carney speaks
  •  Bank of England Inflation Report
  • Earnings: Kellogg, AIG, Kraft Foods, McGraw Hill

        FRIDAY (2/13)

  •   8:30 AM ET - Import/Export Prices - Jan
  •    9:55 AM ET – Michigan Sentiment - Feb
  • Reserve Bank of Australia Governor Glenn Stevens speaks
  • European GDP, French, German & Italian GDP
  • Earnings: TransCanada