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US equities and crude oil follow each other

Currencies, Economic growth, Financial Events, Futures trading, Leverage, Oil markets, Pension funds
By Paul Hodges on 18-Nov-2008
Dowwti.jpg

An interesting note from PetroMatrix highlights the close linkage that has now developed between changes in the Dow Jones Industrial Average and WTI crude oil prices.

The chart, showing market action on Thursday, makes the point very clearly.

PetroMatrix’s analysis suggests that “the correlation across asset classes remains very strong and there is little diversification of sentiment or of asset fundamentals”.