As the market begin to calm down following Friday’s non-farm frenzy a rebound is expected today as concerns that accelerated tapering may be on the cards, following a string of better than forecast employment data, were eased by the surprisingly poor non-farm results. Some investors are attributing the poor non-farm data to the unusual weather that has been affecting the US which means there could be accelerated tapering fears were not completely dispelled. Asian stocks led the rebound overnight with the MSCI Asian Pacific excluding Japan rising 0.6%; however US Futures are currently down 28.
Expect volatility in oil prices this week as Iran’s nuclear deal gets underway. Sanctions imposed on Iran imports and exports are to be suspended for the country on January 20th, with Iran ranking in the top three for oil reserves prices could drastically drop. On the other side of the deal however Iran must eliminate within six months all stores of its enriched uranium. Although the deal is only a short term one, the idea is that the 6 countries, including the UK and US, and Iran can use the six months to solidify a long term deal.