The Peoples Republic of Capitalist Communism hiked gas and diesel prices due to higher crude oil. Reports say that Chinese steal intake is down prompting more housing fears, Aussie falls.
New home prices declined in 45 of 70 major Chinese cities while 21 were stagnate. Chinese Industrials sell off.
The Saudi’s at least had some good news in saying they could increase output by 25% immediately if so needed, helping to offset a lack of Iranian crude. Good thing Bush W. gave the Saudi’s all that lip service, and by lip service I mean kissing the Saudi King on the lips. West Texas Intermediate fell today 2.38%.
US Housing reports came out showing February was near a three-year high with building permits rising but the news did little to move US markets. Much of the housing and job pick up is thought to be due to the warmer then normal winter.
The Iranian/Israeli chatter continues to increase. The logistics of an attack by Israel are much much tougher than the Syria or Iraq attacks which involved just one facility each. In Iran there would be at least six facilities that would all need to be hit at the same time – and the distance of flight to Iran is much farther than Syria or Iraq. Which prompts additional fears that Israel could have to use their own nuclear weapons to take out the Iranian nuclear facilities.
Opinions are far divided on a potential conflict from its already been decided to attack to its already been decided to not attack.
Truly wars and rumors of wars.
If we can circumnavigate the big headwinds this year (Oil, China, Eurozone, acts of God), the market has already showed it will go up (all be it very slowly and on light volume).
A big X factor for upside is when the folks on the sideline decide to get back in – there is a lot of money out there and it ain’t in the markets.