by John Galt
April 17, 2016 19:15ET
Apparently the House of Saud would rather eat their rides than finance them as today’s Doha, Qatar OPEC meeting ended in discord and disaster for the now flailing for a reason to exist organization.
The results? WTI-Crude opened up down over 6% along with Brent and created a huge disaster for the longs that enjoyed the short covering rally of the past few weeks (Charts courtesy of Finviz.com/prices delayed 15 mins):
Note: WTI rolled over to the June 2016 contract starting today; on the old contract it was trading below and around $38/bbl.
Brent is just as ugly and will have a broader impact; more on that in a sec:
Today the Saudi stock market (TADAWUL) sniffed this out and closed down as if they knew this meeting was a waste of time (chart courtesy of Bloomberg.com):
So what does this mean for metals and equities?
Gold is illustrating it’s usual function as a flight to safety, but U.S. equity futures are just ugly to start this Sunday evening:
Not too bad, but by 0500 we’ll have a better clue. Meanwhile the S&P 500 e-Mini’s are not pretty either:
And the NASDAQ 100 Futures follow suit:
The key indicator to watch overnight besides the Middle Eastern markets will be the so-called flight to safety into the Japanese Yen which is rallying nicely tonight but off of it’s opening session highs when the news broke (via NetDania):
Stay tuned for an early morning update gang as that is when we will all get to see how the USD/JPY pair is working along with Middle Eastern markets opening.