Any time markets are volatile, traders look to perceived “leaders” to tell them everything is going to be alright (see the popularity of CNBC’s recent “Markets in Turmoil” specials), and today’s missionary du jour took on that mantle willingly.
Crude oil prices roared back after a brief slip below $40.00 per barrel when Mario Draghi failed to wow the market with his stimulus magic and speculation that OPEC may create a roadmap for a production cut next year. Yet, as the real meeting gets underway, tensions are boiling over as the Saudis try to make a case that a production cut might not matter anyway.
Yesterday, we asked whether Saint Draghi would bring a shiny new present or a lump of coal to expectant EUR/USD bears.
Today we learned that the bears must have been much naughtier than they had thought, as all they found this morning was two particularly small and unimpressive lumps of coal in the bottom of their stockings.
A six week winning streak in U.S. indices is on course to come to an abrupt end on Friday as this weeks’ commodity rout, likely combined with some profit taking in the absence of too much data, takes its toll.