Thursday, September 29, 2016 11:23 AM EDT
Well, it’s official; OPEC actually agreed to cut production of crude in the future. Of course, the details of the deal have not been worked out and the word is that will come at the November meeting. However, the rally in the oil pits appears to be fading this morning as folks such as Goldman Sachs were unimpressed with the deal. Goldman says the announcement of a deal could likely support prices in the near-term but doesn’t change their intermediate-term view of crude.
On the German banking front, while Deutsche Bank enjoyed a bounce yesterday, this morning’s announcement that Commerzbank will cut 9600 jobs and suspend their dividend payments is raising eyebrows. Although concerns about European banks is not above the fold at this point in time, this remains something to keep an eye on. But lest we forget, issues with European banks have weighed heavily on the markets at times since 2010 and as such, we should not become complacent on the issue.
Finally, it is a busy day for economic data and Fedspeak as we’ll get a revision to Q2 GDP and the report on Pending Home Sales before the bell this morning and we’ll hear from Kansas City Fed President Esther George, Atlanta Fed President Dennis Lockhard, Minneapolis Fed President Neel Kashkari, and Fed Governor Jerome Powell. So, it might be a good idea to keep one eye on the screens throughout the day as markets have a tendency to react swiftly to any/all Fedspeak.
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