Markets still digesting impact of oil supply disruption
|The weekend's attacks on Saudi Arabia's oil infrastructure saw major US indices slide lower during Monday's trade, leaving the DOW to break its almost two week long run higher as a result. Crude prices remain elevated and the potential knock-on effect for the wider economy remains a cause for concern here, although with the US ready to tap into its strategic oil reserve and the potential for Saudi production to be re-established relatively quickly, there are some suggestions that the downside for stocks could prove overdone.
In terms of economic data, the Federal Reserve's statement over interest rates due tomorrow will continue to dominate the agenda, the publication of industrial and manufacturing production data for August, due shortly before the opening bell, can expect to be under a degree of scrutiny. These prints are forecast to post returns to positive territory, so failure to deliver here will likely exaggerate calls that the Fed needs to be doing more to stimulate the economy. Earnings from FedEx after the close will also be followed, with the logistics and shipping sector having the ability to act as something of a barometer of economic health. Any shortfall here could again see further profits being booked.
Ahead of the open, the market is calling the DOW down 8 at 27069 and the S&P up 2 at 3000.
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