More saber rattling in Korean standoff leads to modest increase in market nervousness

More saber rattling in Korean standoff leads to modest increase in market nervousness

It’s not surprising that the major U.S. stock indexes are down. So far today the North Korean foreign minister has said that President Donald Trump’s threats against his country amount to a declaration of war, and that North Korea has the right to shoot down U.S. warplanes even if they aren’t actually flying in North Korean airspace. Amazing that the Standard & Poor’s 500 stock index was off only 0.38% as of 3 p.m. New York time.

Yesterday IMF gave up on Trump reflation trade; today financial markets say, Not  yet

Yesterday IMF gave up on Trump reflation trade; today financial markets say, Not yet

Yesterday the International Monetary Fund lowered its forecast for U.S. economic growth to 2.1% for 2017 (from 2.3%) and to 2.1% in 2018 (from 2.5%.) The fund had included a likely infrastructure spending bill and a tax cut/tax reform package in its earlier forecast. Now the IMF ha removed those potential stimulus actions from its forecast. The IMF also poured cold water on assumptions in the draft administration budget for economic growth of 3% in 2021.

Oil rallies for another day on inventory drop in EIA report

Oil climbs as Saudis, Russians agree on continued production cuts

It still has to be ratified by the end of May meeting of all OPEC members, but it looks like Saudi Arabia and Russia have agree to extend current production cuts past their June expiration. U.S. benchmark West Texas Intermediate moved up 2.01% to $48.80 a barrel. The positive surprise in this news, as far as oil markets are concerned, is that the two want to extend the agreement not for another six months but through the first quarter of 2018.