Oil prices rose to over $50 a barrel, its highest since August. There is still however, an oil overhang. OPEC announced last week (w/c 5th Oct) that it would cut its production and finalise these details in November.
Oct 11th: Oil rose to their highest levels in one year after Russian president Vladimir Putin endorsed a cap in production announced by Opec.
The IMF held steady on its forecast for weak global growth amid further warnings that more needs to be done to strengthen the outlook. Global growth for this year is expected to slow to 3.1%, and to 3.4% in 2017.
The US Republican Presidential campaign was plunged into crisis over the weekend of 8th October following lewd historic comments candidate Donald Trump made about women. The election takes place on November 8th.
China is loosening its foreign investment criteria in a bid to be a more open economy and create competitiveness. FDI for the first 8 months of 2016 had increased by 4.5%.
Greece has been given the go-ahead to receive €2.8bn bailout money from the EU following agreement by Eurozone ministers in a meeting in Luxembourg. The EU Ministers confirmed Greece had implemented all policies in order to receive the drawdown.
Germany enjoyed a larger than expected rise in industrial order for August following strong domestic consumer demand of 2.6% and Eurozone orders rising to 4.1%.
The World Trade Organisation has reported that 2016’s growth has been at its slowest pace since the economic crisis of 2009 and believes this serves as a ‘serious … wake-up call’. This year’s trade growth is expected to be just 1.7%, a massive re-adjustment of April’s forecast of 2.8%.
Eurozone inflation for September was just 0.4%, well short of the 2% target in place by the European Central Bank.
US: Goldman Sachs reported a 58% Q3 net-income gain mainly as a result of bond trading and rising equity markets. It is the first time in several quarters that the US giant achieved double digit ROE (return on equity).
The Eurozone was happy to report that business activity grew at its fastest pace for 2016 in October. The PMI grew to 53.7 in October from September’s 52.6 which was the highest reading so far this year. Inflation however remains at just 0.4% for September.
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