Finance World

Crude oil began the post-midterm election day on the defensive. Not so much due to the result, however, which for a change yielded no major surprises. The Democrats failed to create the "Blue Wave" while the Republicans saw no "Red Repeat", and the Democrats took the House. 

Global stock markets bounced and the dollar weakened following comments from President Trump that trade discussions with China were “moving along nicely” and after he supposedly, and later denied, ordered a draft of a US-China deal. Commodities struggled despite the weaker dollar with crude oil heading for its worst week since February in response to rising production and a potential lower-than-expected Iran sanctions impact.

Bahrain’s headline real growth rate increased sharply in the second quarter of 2018 to an annual rate of 2.4%. The data published in the Bahrain Economic Quarterly Report (BEQ), produced by the Bahrain Economic Development Board (EDB), shows a significant acceleration of growth from the previous quarter. This rebound was underpinned by both the normalisation of oil production and markedly faster non-oil growth.

The US Treasury market set the investment world on edge in early October when long US Treasury yields climbed to new multi-year highs – the US 10-year benchmark cleared 3.13% for the first time in more than seven years, and the big 30-year T-bond yield passed the massive 3.25% yield for the first time since early 2014, a level it had approached on no less than four occasions since late 2016. Driving the move was a spate of strong US data and Federal Reserve chair Jerome Powell suggesting that the Fed funds rate is “nowhere near neutral” in offhand comments. The reactivity of the US dollar to developments in US yields has been an on-again, off-again affair, but a sharp rise in US yields in late Q3, after strong wage inflation data were reported for August, resulted in a weaker dollar for much of September.

UPS (NYSE:UPS) today announced third-quarter diluted earnings per share of $1.73, up more than 20%, and adjusted, diluted earnings per share of $1.82, up 26%.