Another interesting overnight session is unfolding as equity futures surge higher and oil prices retreat 1.5%. Rumors in Libya are flying fast and furious these days. The one thing that is certain is that the equity markets appear to be hostage to the oil markets. This evening’s decline in oil prices is providing some relief to equity prices.
The more interesting occurrence might actually be the 1% decline in copper prices. I don’t want to read too much into one night of action, but the divergence in copper and oil has been most obvious in the last month since oil prices began surging and investors started selling copper due to economic growth concerns. A continuing decline in copper prices (regardless of the action in oil) would not bode well for equities going forward….