Well the Rio Olympics is officially over, and despite the rather amusing appearance from Abe dressed as Mario last night, Asian markets weren’t completely distracted and began the week negatively. Comments made over the weekend with regards to a further US rate hike have also likely played on investors’ minds. Fed VC Stanley Fischer added to numerous comments last week alluding towards a further rate hike at least this year if not September, by stating the Fed was nearing targets. Fed talk is likely to be one of the main themes through this week with the Jackson Hole symposium seeing Yellen talk on Friday.
After a rally last week that saw brent oil rise back above $50, this week as we write the spot price is 2.26% lower, naturally weighing on the FTSE 100 to close the index down 0.44%. European stocks did start the day fairly well despite Asian markets falling lower and US futures pointing towards a lower open, however these early morning gains slowly reversed across Europe leaving the majority in the red.
One of the main stories today was that US pharmaceutical firm Pfizer confirmed it is to buy US cancer drug firm Medivation for c.$14bn. The offer of $81.50 a share represents a 21% premium to Medivation’s closing share price on Friday.
The oil market is tricky nowadays. Slippery some may say. However putting it in your car materially hasn’t got any harder. Unless your Ryan Lochte, who after his terrible un-worthy Oscar performance account of what happened during the petrol station altercation, has been dropped by his sponsor Speedo.