Oil rebounds, Dow Jones rallies, Eurozone mixed

Brent Crude crawled its way back up to $56 per barrel this afternoon; however, this move didn’t cause the explosive gains that were seen at the start of the week after investors were wary over the longevity of this rebound.

This wariness meant FTSE couldn’t regain much of the losses it incurred yesterday, even with stocks like Rexam, BT, Tullow Oil and Vendata all having a strong day on the markets. The FTSE did managed to creep into the green, but compared to the situation in the US, the UK index has looked very limp indeed as Thursday draws to a close.

The Eurozone went through its familiar motions today, with contradictory information leading a mixed set of markets. More stagnation in the Greek-debt saga, epitomised by a terse and unproductive Varoufakis/Schauble meeting was countered by an increase in the region’s GDP outlook for the year as Greece’s own outlook was slashed. News that Putin had rung Tspiras was as unwelcome as you would expect, whilst the Greek leader promised to end the country’s austerity for once and for all, and Francois Hollande backed the ECB’s shock Greek bond move. The one consistent was the fact that the euro continued to regain the ground it lost against the dollar yesterday, causing more headaches for gold.

This week has revealed that for all the platitudes surrounding unity, and pledges towards maintaining the currency union, the Eurozone is plagued by the same issues as any big family: pettiness, back-biting, and an unwillingness to truly co-operate and move in the same direction, all plastered over with smiles that look more like grimaces. Draghi’s move last night means Greece is running out of time, and given the unimpressed reactions from those who have been visited by Varoufakis, there is already a sense of who is going to have to blink first.

Despite a string of disappointing figures, including a trade balance announcement that saw the biggest deficit since 2012, increasing unemployment claims and falling productivity, the Dow Jones is on track for its best week in 2 years. The US markets have been able to ignore the less-than-impressive home form due to oil’s big rally at the start of the week; the fact that the commodity has rebounded today provided another reason for investors to turn a blind eye to the US data. This could all change tomorrow however as the non-farm employment change is announced; even if the Dow Jones does close the week strong, it will not change the fact that the USA’s current economic recovery does appear robust enough to justify an interest rate hike from the Fed.