Oil, GameStop (GME) Soar & Jackson Hole Inflation Expectations – FinTwits Trends to Watch
Oil, GameStop (GME) & Jackson Hole
- Oil – US Crude extends its rally amid rising concerns of supply shortages
- GameStop (GME) climb loses momentum
- Inflation is still here, Jerome Powell in control at Jackson Hole Symposium
Oil – US Crude Extends its Rally Towards $70.00
At the time of writing, Oil has extended it’s rally by over 1% during today’s trading session, edging higher towards the key psychological level of $70.00. As the Delta variant continues to spread at a rapid rate, concerns regarding further lockdowns and diminishing demand for commodities, Oil prices fell from the July 2021 high ($76.90), finding support at $61.89.
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Chart prepared by Tammy Da Costa using TradingView
Since then, the FDA approval of the Pfizer vaccine combined with the Oil production outage in Mexico boosted Oil prices, allowing them to continue their rise towards $70.00. Although commodities continue to assess a geopolitical tensions alongside the rise of the Delta variant, further supply shortages may continue to support Oil prices despite fears of further lockdowns.
GameStop & AMC
This week, ‘meme stocks’ GameStop (GME) and AMC Entertainment (AMC) turned bullish as the surge of new Coronavirus cases around the globe cast a shadow over expectations of rate hikes and stimulus measures. Although these stocks have benefitted from the Fed’s loose monetary policy and the US stimulus check program they remain vulnerable if the Fed decides to cut back on further stimulus measures sooner than expected.
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Jackson Hole Symposium & Inflation Expectations
This year’s Jackson Hole Symposium is focused on one key issue, inflation. After a large amount of Stimulus entering the economy, inflation and a potentially overheated economy have placed Fed Chair Jerome Powell at the forefront of the Jackson Hole Symposium as he provides clarity on the timeframe of tapering.
Although the Fed believes that inflation is ‘transitory’, the Fed has acknowledged the need for tapering in the foreseeable future but low interest rates are likely to remain in place well into next year. DailyFX Strategist, Christopher Vecchio explains the details surrounding tapering and the expected timeline in his recent article Central Bank Watch: Fed Speeches, Interest Rate Expectations Update; Jackson Hole Preview.
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Source: Central Bank Watch: Fed Speeches, Interest Rate Expectations Update; Jackson Hole Preview by Christopher Vecchio, CFA, Senior Currency Strategist for DailyFX
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707