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Oil slips higher

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The oil market is providing some interest, with a promise of reduced Saudi production and a hint of OPEC cuts. With the US mid-term elections out of the way, US political pressure for a lower oil price may be less urgent. The UK foreign secretary visits Saudi Arabia today.
  • Sterling weakened a little on the back of the eternal tedium of the EU-UK divorce. The remarkable thing about that is it means some people in the FX markets are still sufficiently awake as to be paying attention (it must be human action. No algorithm could make sense of the process. Nor can humans, of course).
  • The Italians are making some tweaks to their budget proposals, reportedly including reducing economic growth forecasts for 2019 from 1.5% to 1.0%. To focus so much on such numbers is pretty absurd, as no one will know how fast Italy grows in 2019 for several years.
  • Trade is likely to assume greater importance to markets, as the G20 meeting looms at the end of this month (and more draconian taxes on the US consumer are just over six weeks away). Expect more stories in the media about how companies are finding creative ways to evade the taxes.