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Reuters presents an interesting chart, which shows the historical correlation between oil (both Brent and Crude) and equities. After we had seen a positive correlation, either weak or strong, between the commodity and the risk asset for two and a half years, the correlation has finally flipped and gone negative. And while many debate whether or not the WTI is relevant at all any more with all the factors that have caused a record spread between it and Brent, one thing is obvious: the last time WTI to Stocks hit a correlation of -0.
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Risk off! The dollar is having a strong day, while stocks drift lower, and big commodities are getting smoked. Silver, cotton, and oil are noticeably lower. This chart from Bespoke is really interesting. As they put: Silver just fai... Read Post

Gold prices eased as a softening of other assets such as stocks and crude oil indicated weaker appetite for fresh investment. ||| Gold prices eased on Monday as a softening of other assets such as stocks and crude oil indicated weak... Read Post

Unusual market phenomenon: A persistently high correlation between oil and stocks. "Crude oil is now influenced more by the stock market than by its own inventory levels or demand patterns." Read more >>> Join the conversation about... Read Post