Stocks steady but oil slumps

Stocks have continued to make headway this afternoon, oblivious of the recession fears dogging oil, which is down sharply again today.

Stocks finish up the week with more gains

“Stocks are once again shrugging off warnings about high interest rates in the US, and it appears the normal seasonal tendency of equities to rally in Q4 has asserted itself once again. Indeed, the fact that Fed speakers continue to bang the hawkish drum, but to little apparent effect, might suggest that traders still have their hearts set on a risk-rally into the end of the year, even if that sets everyone up for a fall in January.”

Oil prices touch six-week low

“Oil has seen several sharp drops this week, followed up by tepid rallies that suggest recession fears are really making themselves felt in the commodity. The latest drop today has seen around 4% wiped off Brent and WTI; this in itself might be giving fresh impetus to the equity rally. While FOMC members go on about rising rates, the market is watching oil and other things like shipping rates and expecting further weakness in US CPI prints in coming months.”