Monday 12th October 2015
Glencore's potential sale of copper assets highlights the distress in copper mining
Where to from here on the S&P 500?
On Monday mining giant Glencore announced the sale of two copper mines as it attempts to cool down fear from investors that the company's debt may lead it to impair profits. I highlighted that the red metal which is used in many industrial processes as well as household uses has seen a dramatic drop in price which has hurt Glencore's profitability as it makes up the largest component of the company's profit. I also highlighted how a number of competitors are responding in ernst to plug loss generation.
I discussed the possibilities of the direction of the S&P 500 might head to leading up to the end of the year. There has been been a lot of pessimism of the recent rally with some saying that it was a mere relief rally in response to the huge drop that was experienced while others noted the large amount of short coverage that remains open at present that could set up for a squeeze in the weeks to come.
Tuesday 13th October 2015
Chinese trade numbers disappoint again fuelling worries
Does the Dow Jones have what it takes to pull off an end of year rally
We've seen a few good economic numbers coming out of China over the last month which has boosted confidence to a degree, however all things have to come to an end with the latest trade numbers sending shivers down markets. The biggest concern is imports which dropped year on year suggesting that the nation's industrial production may be slowing down faster than expected with a possible dent in gross domestic product.
Following on from Monday's article on the S&P 500 and the chances of seeing some fireworks going into the year end I decided to pick up some analysis on the Dow Jones. So far this year only 7 out of the 30 components have registered positive double digit returns. I believe if we are going to see a rally of some sorts we need to see the foundations building up to it now.
Wednesday 14th October 2015
Africa:Land of the plenty or obstacles
Top Tweets Today: 14/10/2015
With the recent commodities slump I thought it would be appropriate to have a look at Africa who has become the next frontier in terms of securing commodities for the Chinese. But with the drop in most commodities the growth prospects in the continent has taken a back seat for the time being. I discuss the potential as well as the problematic situation some African countries are experiencing at present and conclude that there is still mass amount of opportunity to be found.
I found some analysis of the Dollar Index by Andrew Nyquist in which he highlights the big upside we could see materialize in the coming months that does throw a damper note on the commodities bounce we've seen recently.
Thursday 15th October 2015
Yesterday's earning surprises point to weaker US growth
Top Tweets Today: 15/10/2015
Earning season is in full swing and much to the disappointment to many as big names report numbers that are far from shiny. The biggest losers this week is undoubtedly Walmart who reported weaker growth as well as headwinds experienced from a strong dollar. Netflix also came out with some dissatisfied numbers that saw US subscribers grow less than expected. If these giants can't keep up, who else can?
Friday 16th October 2015
How the oil sector is shaping up
Is OpEx leading to something bigger?
With oil producers being on the back ropes over the last year I tried to find some evidence of impending victory from either side namely OPEC and US shale producers but it seems as if the nasty battle continues to rage on. Although shale wells are being close as the months past it would also seem as if the politics in OPEC is starting to heat up as some see the Saudis as playing a too dominant role.
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