Equities Drop Keeping A Lid On Energy Rally

On August 24, 2012 by TradingDesk

Global equity markets are being dragged modestly lower by the Euro this morning, as some doubts have risen about the bailout plans now that leaders have returned from their summer vacations. Durable goods orders, excluding a large aircraft order from Boeing, dropped again last month and forward looking indicators show that purchasing will continue to slow down into the fall.

US Stocks have dropped over 2% this week, which is keeping a lid on the energy rally for the moment. Bullish technical studies, Mideast tensions and an active group of storms in the Atlantic should keep selling to a minimum for now.

TS Isaac is poised to make landfall in the US as a hurricane next week, with everything from New Orleans to Tampa bay under the forecast cone. Impact on gulf coast oil and refinery production is expected to be minimal – for now – but bears watching given the extremely warm waters in the US Gulf and unpredictable nature of this storm.

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