Yesterday’s OPEC monthly report on oil had a downward revision of the global oil demand growth that has been recorded in 2019 (-0.02mb/d), and a huge downward revision of the 2020 outlook (-0.23mb/d). The US Crude oil inventory change jumped by 7.5M w/w. Even though it has gave up almost half of its gains, the yesterday’s oil rally was impressive and somehow against what one would expect.
OPEC’s report is the first globally read outlook that has been revised, accounting the new coronavirus outbreak. China’s GDP growth is now expected at 5.4% (-0.50pp), the global GDP outlook is now expected at 2.9% (-0.1pp), the US GDP growth expectations were not revised (US 2020 outlook at 1.9%).
A wide spread cabinet reshuffle is planned by Boris Johnson. The usual market participants’ reaction is the strengthening of the currency of the country that is experiencing the reshuffle.
The EU health ministers are meeting in Brussels over the new coronavirus, Covid-19. Yesterday, China reported a sudden surge of new confirmed cases and total death count. The change is attributed to a decision to include probable cases to confirmed cases. Nevertheless, it is worrying.
Macro releases & Earnings: Today’s economic calendar includes the US inflation reading, the Alibaba and Airbus earnings.
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