Friday, February 12, 2016

Economic Journal - Friday, 2/12/2016

(As of 7:15 am PST)

US markets opened to the upside Friday following a surge in oil prices and a batch of positive economic data. Official data showed consumer spending rose sharply in January, while a report on retail sales showed sales rose 0.2% for the month, better than expected. It appears some of the benefits of low fuel costs are beginning to show up in consumer behavior as confidence has steadily been on the rise recently despite the global backdrop of uncertainty. Oil prices are soaring today, up 7.5% to $28 per barrel after reports that OPEC is ready to cooperate on a plan for production cuts. International markets are mixed heading into the weekend. European stocks are firmly higher recovering from yesterday’s selloff, while Asian stocks limped into Friday’s close much more downbeat, with Japan’s Nikkei falling 4.8% to close out its worst weekly drop since 2008. Gold is giving back some of its gains from yesterday after jumping to its highest value in over a year while interest rates ticked higher with the 10 yr. treasury yield hovering just below 1.7%.

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