Equity and commodity markets survived another round of risk-off trading Thursday, and the sentiment has turned positive this morning. European markets are leading the way higher, buoyed by a German business confidence survey and news that France is on the verge of giving Nicolas Sarkozy the boot in upcoming elections. Hints that China is willing to provide more monetary easing to ease the pain of its housing slowdown, and reports that the IMF will boost its bailout funds (The US being the primary source of funds) has also helped push the dollar lower and risk assets higher so far.
RBOB continues to draw the most attention in the energy complex, with the sellers out in force again yesterday. This week’s action has turned the gasoline contract from the strongest contract in the energy space, from a technical perspective, into the weakest. HO and WTI continue to hold support, which leaves the window open for higher highs in 2012.