Market Report & Analysis for 1/16/2019 Morning Edition

Morning Market Overview

The new trading week started with the oil complex on the defensive Monday after disappointing economic data out of China. The latest out of China showed weakening imports and exports suggesting that China’s economy is slowing which will impact oil consumption.

Despite the negative headline data, China’s crude oil imports increased strongly by 30 percent in December compared to a year earlier. Whether the data out of China is a result of the trade dispute with the US or just simply an overall slowing of the Chinese economy it is not yet clear to me. That said the market is watching everything out of China and the US to see if the trade dispute is impacting either or both economies and if it is permeating around to other economies around the world.

On the financial front, global equity markets were mostly lower around the world.

The EMI Index was lower by 0.25 percent for the day with the year to date gain at 5.4 percent. All ten bourses in the Index are in positive territory for 2019 with Japan holding the worst performing spot in the Index with Brazil in the top spot with a 9.6 percent gain for the year.

The higher value direction in global equity markets today was a positive price driver for the oil complex. On the currency front, the US dollar Index was lower for the day with the Yen/USD and the Euro/USD mixed.

Overall the currency markets were a slightly positive price driver for the oil complex.