Perfect Market Weather
Mati Greenspan | Sep 14, 2017 05:32AM ET
Have you ever had the feeling that the weather is either too good to be true, or too bad to be natural?
Forget climate change, it seems increasingly likely that the governments of the world either are at the moment or will be able to control the sunshine and clouds.
A program called HAARP, which is funded through the US Government's proven to be false .
Professor Michio Kaku a theoretical physicist who frequently dabbles in the weather did comment on claims that the government of China banished clouds from the Beijing Olympics saying that the evidence is inconclusive.
He also mentioned that the US government used weather manipulation in the war against Viet Nam before the interviewer quickly interjected saying that they had "alleged to" influence the weather.
Still, it's nice to think that maybe one day we will indeed be able to control the skies. Personally, I want to see what the adverse effects of such experiments could be before rendering an official opinion.
Today's Highlights
- Perfect Market Weather
- Energy Led Gains
- Carney's Big Day
Please note: All data, figures, and graphs are valid as of September 14th. All trading carries risk. Only risk capital you can afford to lose.
Market Overview
The weather seems to be perfect in the stock markets lately. Despite everything that's happening in the world, the stock indices in the United States continued to climb into record high territory on Wednesday.
Not too hot and not too cold. The Dow Jones rose by a modest 0.18% marking its 37th record high of the year.
The gains were led by the energy sector, which rose by 1.2% after a fantastic day for oil.
Oil Surge
Black gold was rising nicely by the time the bell rang on Wall Street . One hour later the crude oil inventories were released (circle in the graph below) showing that stock piles of the sticky stuff had risen drastically over the past week.
The initial reaction was for the price to fall on increased supply but that move was quickly reversed and oil ended the day much higher
Get The News You Want
Shares in companies like Chevron (NYSE:CVX) and Shell (NYSE:RDSa) which rely heavily on oil managed to push the entire market higher.
Over to England
Today is a big day in the UK and not because of the Brexit... not directly anyway.
The Bank of England is due to deliver their interest rate decision at Noon time in London along with their monetary policy statement.
The Canadian Governor of the BoE Mark Carney has been dreaming of raising the interest rates since early 2014. The plan was derailed at the time by the Scottish Referendum and just when he was ready to get on track the Brexit came and changed the entire picture.
Interest rates have been on the floor in the United Kingdom for a long time. Now that unemployment is at a 42 year low and inflation finally seems to be going the right way, the timing couldn't be better.
The only issue is, that the BoE hasn't really prepared anybody for a hike today. Most central banks like to give the market some time to prepare for a move like a rate hike.
On the other hand, the Bank of Canada did surprise the market with an unexpected hike earlier this month. If Carney does decide to follow in the footsteps of the bank he used to run it would very likely send the British Pound flying, possibly by several hundred pips in the span of a few minutes.
Let's have an awesome day!
@MatiGreenspan
eToro, Senior Market Analyst
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