The litmus test for the global economy

3 key questions for the oil market poker game, ahead of OPEC’s meeting

Volatility continues to dominate oil markets, as the above chart confirms.  Some weeks have seen prices move by over 18%.  These are extraordinary moves in a market which is very well supplied, with near-record inventory levels.  Some recent daily moves are equally extraordinary, with prices jumping $2.50/bbl on Tuesday. The volatility highlights the power of […]

Markets need more cash from the Janet Yellen tooth fairy

Central banks have acted as the proverbial tooth fairy towards financial markets in recent years.  But they have not just left a small amount of money under the pillow when a child lost its first tooth.  Instead they have printed trillions of dollars via Quantitative Easing (QE), to persuade investors to buy shares and commodities, […]

High-frequency traders pay $millions to be legal highwaymen

In olden days, highwaymen would hang around stagecoach inns, waiting to see when wealthy people were travelling.  Then they would hide out along their likely route, getting wet and cold, in order to take their cash. Today the arrival of electronic trading has changed all this.  High-Frequency Traders (HFT) now have computer programmes to act as their lookouts, […]