Press Review: Wall Street Now Sees Oil Around $40
India makes surprise early rate cut, hints at more
(Reuters) - The Reserve Bank of India surprised markets with a 25 basis point reduction in interest rates on Thursday and signaled it could cut further, amid signs of cooling inflation and what it said was a government commitment to contain the fiscal deficit.
While the early move was unexpected, aggressive reductions in rates have been seen as likely over the course of the coming year to help India's economy out of a rut, with growth rates struggling to recover from their weakest levels since the 1980s.
Wall Street Now Sees Oil Around $40
Brace for $40-a-barrel oil.
The U.S. benchmark crude price, down more than $60 since June to below $45 yesterday, is on the way to this next threshold, said Societe Generale SA and Bank of America Corp. And Goldman Sachs Group Inc. says that West TexasIntermediate needs to remain near $40 during the first half to deter investment in new supplies that would add to the glut.
"The markets are continuing to price in huge oversupply in the first half of 2015," Mike Wittner, head of research at Societe Generale SA in New York, said by phone on Jan. 12. "We're going to go below $40."
What, Us Worry? Economists Stay Upbeat as Markets See Trouble
The U.S. consumer, that dynamo of the global economy, just took a step back.
Relax. It's not that bad, economists say.
News Wednesday that U.S. retail sales unexpectedly declined in December reverberated through financial markets, but few economists read the report as a sign of trouble for the nation's economy.
In fact, many economists say the U.S. economy is doing just fine.
So why did the markets react the way they did? The answer, in part, is that the report added to a wall of worry confronting investors. Topping the 2015 angst-list are the plunge in oil and other commodities, as well as slowdowns in China and Europe.