![]() A concern is also developing about a potential government shutdown.The reason is that there is a lot of money that has been borrowed in Japan at low interest rates and then invested in the U.S. In The Arora Report analysis, if the Bank of Japan changes its loose monetary policy, it will have a negative impact on stocks in the U.S. Rising oil prices may force the Bank of Japan to change its loose monetary policy. Japan imports almost all of the oil it uses.Rising oil prices are making the job of fighting inflation difficult for the Fed and the Bank of England.FOMC, Bank of England, and Bank of Japan meetings are ahead this week.These ratings are based on the following: You can see the oil ratings from the top menu in the Real Time Feeds. For more guidance, refer to world renown oil ratings from The Arora Report. ![]() The fear is that Saudi Arabia and Russia may want to tighten the screws on the West by trying to run up oil prices to $120 – $130.Also contributing to higher oil prices is general risk-on sentiment generated by higher stock prices and house prices holding up in spite of higher interest rates.Right now, lower income consumers can still borrow and higher income consumers still have savings. The American consumer has become used to excessive spending. Rising gas prices are not having a negative impact on other discretionary purchases by American consumers. However, this time is proving to be different so far. ![]() In the past when gasoline prices rose, consumers would cut back on other discretionary purchases. economic data and American consumers’ willingness to spend is adding to the upward pressure on oil.
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