Why $100 Oil Might Be the Flashpoint For the U.S. Market!
By Sy Harding
A number of major global markets, including China, Hong Kong, India, and Brazil topped out in November and have been in varying degrees of corrections since, down 12% to 17%.
Their concerns have been rising inflation.
However, markets in Europe and the U.S. have had no such concerns and have not only been holding up well, but continuing to make new highs. That is until the last few days, when the turmoil in Egypt spread to oil-producing countries and caused a sharp spike-up in oil prices.
That is something that does have the attention of European and U.S. markets – at least short-term.
Obviously, rising oil and gasoline prices (added to rising food costs), affect the ability of consumers to spend on other items, and raise concerns about the economic recovery.
But why might the specific level of $100 oil be of concern, when the near tripling of oil prices since 2009 has not been?