23 Feb 2012: Markets inflect; Brent Crude hits record high

Major Stories

  • Markets fail to signal a clear direction today

    • Stocks: FTSE All World rises after 2 days by 0.1%, however FTSE Eurofirst fell 0.1% and FTSE 100 gained 0.2%; S&P 500 is expected to open firm
    • Debt: UK 10-year Gilts stay at 2.17%; US 10-year bonds are at 2.03%
    • Commodities: Copper stays at $3.83/pound; Gold is up a full 53bp since morning to $1779/ounce; Brent Crude hits highs at $124/barrel
  • Oil hits record in Euro denomination

    • A day after Oil hit a record high in sterling denomination, Brent Crude has hit a record in Euro terms, currently at €93.63
    • This may undermine growth and demand for refined oil products; the problems with Iran being sanctioned will force Saudi to step in to ‘squeeze the gap’
    • Oil prices could well reach the $150/barrel mark this year
    • A lot might also depend on Libya getting back to peak production capacity sometime this year

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