I’m Erick Bertsch with MiningClips.com and this is your Weekly Market De-Brief for Friday, January 22, 2016.

Stocks continued to rebound today, providing optimism that the worst start to a trading year in history has finally begun to reverse course. In fact, a BNN interview with David Prince today, Founder and President of Harbinger Capital Market Research, revealed that Global Markets have lost US$7.3 Trillion since the start of 2016, and in the past six months, Global Markets have shed about US$17 Trillion, equivalent to an entire year of US GDP. We’re not out of the woods yet, but it is nice to finally see a bounce.

Oil prices continued to rise, with crude oil WTI futures on the NYMEX closing the day at $32.25 a barrel. While some are speculating that oil may have bottomed, and therefore presents a buying opportunity, I’d like to remind listeners that mid-week the US reported that their inventories rose to four million barrels, almost double the 2.2 million barrels forecasted. For now, the world remains oversupplied, and with China’s economy continuing to no only slow, but shift towards a more service-based model, it’s hard to see where new demand will come from in the immediate future.

Turning to North American markets, the DOW regained the 16,000 level today, closing up 211 points at 16,093. For the week, the DOW gained 105 points over last week’s close of 15,988. The TSX also regained ground this week, closing up 354 points to end the session at 12,389. That’s a 316 point gain over last Friday’s close of 12,073. Also in Canada, the dollar has pushed above 70 cents, closing at $0.7067 US, providing some ease for consumer imports.

In Metals

New York spot gold slipped under the $1100 level again today, losing $3.40 to close at $1098.00 an ounce. Last week’s close was $1088.80, giving the shiny metal a $9.20 gain on the week.

Silver lost ten cents on the day to close out the week at $14.00 an ounce, slightly higher than last week’s close of $13.91.

High-grade copper ended the week up at $2.0015/lb, according to Comex data, rising six cents on the week from last Friday’s close of $1.94.

It’s hard to say if the last two trading sessions are the beginning of a recovery of the more than US$17 Trillion lost in Global Markets since June of last year. With the Bank of Canada holding it’s rates place, the European Central Bank doing the same and intimating more quantitative easing in March, we expect the US Fed will most likely to follow suit later this spring. Dividend yielding stocks may well be the place to be for the moment and that current markets provide more of a trading opportunity than an investing opportunity. At least for now…

MiningClips.com will be reporting from the Vancouver Resource Conference this coming Sunday and Monday. For a recap of the show, tune in for our Daily Market De-Brief on Tuesday, January 26, 2016.

I’m Erick Bertsch.

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