FX Futures Edge: World Markets Are Higher On Iran Accord
Richard Rhodes | Nov 26, 2013 02:16AM ET
STOCKS: The world economy is muddling throug. The sequestration and continued Congressional argument regarding government closures and debt ceilings are clear headwinds to the US economy, while China is showing signs of trying to cool inflation. The Eurozone remains mired in inaction, athough showing nascent signs of growth. Quite clearly, we feel risk is being mispriced at current levels given the economic backdrop and developing pressure upon corporate revenues/margins/earnings. But, the QE pillars continue to hold prices higher than in non-QE times.
STRATEGY: The S&P 500 remains above the 160-wma long-term support level at 1404; and the standard 200-dma support level at 1636. But perhaps more importantly, the distance above the 160-wma has regained the+25% level that denotes a “bubble-like rally” threshold. If it expands towards 30%, then an upside explosion may be under way.
WORLD MARKETS ARE HIGHER ON THE IRAN ACCORD that was reached over the weekend between the Six Powers and Iran over Iran’s nuclear program, and in many quarters is being called historic in nature. Israel doesn’t agree, and while they call it historic, they call it a historic mistake. Regardless, the agreement is an interim agreement, while the groups work out the agreement’s long-term details, so there is much work to be done. But, crude oil is sharply lower on the news, with the January futures trading lower by -$1.40 to $93.34, and this is supporting stocks around the globe.
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