Vive la Revolution
2017 is a critical year for European politics not to mention the triggering of Article 50 and Trump.
Yesterday morning the UK released their second estimate Q4 GDP figures. They were revised down to +0.4% from +0.5%, whilst the broad consensus and our own economist forecast had been for it to be unchanged at 0.5%.
Given that an employment data-led shift in interest rate expectations was the trigger for the ‘correction’ in equity markets earlier in the month, it is logical to have reasoned that a strong CPI print for the states on Wednesday last week, and its ultimate implications in the mind of FOMC members, may have sparked a second wave lower.
Brent recovered sharply last week, particularly after the weekly US inventory numbers revealed a lower than expected increase in US crude inventories of only 1.8m barrels of crude and 3.6m barrels of gasoline while at Cushing, the delivery point for US crude futures, there was a fall inventories of 3.6m barrels.
The independent International Energy Agency has just released its latest monthly report last week, which covers the month of December 17.
Zinc has continued to set successive highs and this morning reached 3,481 $/MT, a new fresh 10 year high. A weaker USD across the board has been the driver for strength across the complex.