I write on another ‘red’ day for the world markets. There aren’t any ‘particular’ reasons, in that the US Fed’s warning or the chancellors’ comments of ‘we are going into recession’ are unexpected by anyone.
The bizarre reverse oil price for Texas Crude shocked us all. How could it happen and does it reflect reality? Not really. What did happen (and can happen again) is that storage capacity for the stuff is filling-up.
So the FTSE100 breaks back-through the 6,000 barrier on the upside. This is good news. As usual, we can’t say that it is permanent nor a ‘dead cat bounce’. That’s a ‘mere’ 23% higher than the recent low.