If you want to know what has big miner’s rallying as iron ore craters, has banks partying as sell side research guts the economic outlook, has markets surging even the yuan crumbles, and has the Aussie dollar jumping back over 72 cents even as bank’s predict historic lows, then look no further than this chart of Brent oil:
It just hit an eight month high. Oil lifts everything because it is so correlated with US credit via shale debt (charts from Deutsche):
Advertisement
But to my mind this cannot last. The oil market has not rebalanced, OPEC is broken and there’s more supply coming, plus a rising US dollar does not work well with oil: