The situation with OPEC's production limits becomes even more bizarre

Do you remember that the OPEC countries agreed to extend their production restrictions by the end of the first quarter of 2018? And instead of jumping, the price of oil starts with their sharp depreciation...
Apparently, market participants still had concerns that OPEC countries would not be able to meet the accepted restrictions. And they were right. It became clear that in May the cartel actually increased its production.
The situation becomes even more bizarre in June. OPEC production again exceeds production constraints, pointing to the worst coordination between countries over a long period of time.
According to data from the International Energy Agency, world production rose by 720,000 barrels per day in June. Saudi Arabia, the largest producer within OPEC, produced more oil in June, a month earlier.
More oil has also produced by countries that are not officially involved in OPEC, such as Nigeria and Libya.
A total of 21 OPEC members reached an agreement at the end of last year, which aimed to cut production by 1.8 million barrels. The purpose of production cuts was to raise the price of oil. Low raw material prices have largely become a reality as a result of the rising production coming from the United States.
But, there is still good news about oil. MEA forecasts an increase in oil consumption of 1.5 million barrels per day in the second quarter, compared to one million barrels in the first three months of the year.

Does the ECB ends the stimulus in September?

The European Central Bank is likely to signal the end of its asset repurchase program in September. Such action is expected to happen next year, according to a Wall Street Journal financial report.
Part of the market expects the cancellation of the program to be one-off, while others say that this will happen smoothly and gradually, with a reduction in the volume of the assets purchased.
Last month, ECB chief Mario Draghi opened the door for the end of monetary stimulus, saying the eurozone economy is steadily developing.
Formal bankers who recently commented on Reuters have indicated September or October as the most likely time to make such a decision but have "stressed" that it will largely depend on emerging macroeconomic data.

The S&P 500 is the most expensive in history, measured in working hours

The stock market flies too close to the sun and it is possible that "its wings will burn soon". This is what experts from Bank of America Merrill Lynch warn. In fact, the bank believes that this can happen by the end of the year.
The US bank, however, warns of this from the beginning of the year, and as we can see, the indices continue to reach new and new record values.
The bank, however, is innovative about why the S&P 500 is expensive. According to their calculations, the number of working hours needed to buy an index has reached a record high.
And this may be another alarming signal to investors.
The rise in US indices was supported by central bank policy, which is quite likely to turn from a supportive to a negative factor, given the normalization of policies.
According to Michael Harnett, a strategist at BAML, a further rise in risk assets will cause serious problems.

Asian indices rose, Dow with a new record after Yellen

Asian currencies and indices rose after Janet Yellen signaled yesterday that the Fed would not hurry with its policy of further rising interest rates.
The dollar fell for the fourth consecutive day, with the dollar index reaching a 10-month minimum.
Serious increases were recorded by the US indices, such as Dow Jones, at a new historic record of 21 532.14 points. Close to record values are the other two leading US indexes.
South Korean Kospi has risen to a new historic record.

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The Japanese bank is expected to reduce its inflation forecast

Japan's central bank is expected to lower its forecast for inflation, but to refrain from increasing its incentives this month. This would be a step back from the promise of Haruhiko Kuroda, the head of the Japanese central bank, to do what it takes to reach inflation targets.
A potential fall in inflation forecasts in Japan would be another blow to the central bank as well as for the yen. The latter is already experiencing the negative impact of these expectations, with USD/JPY rising to levels above 113.50 yen.
The meeting of the Japanese Central Bank will be held on 19-20 July, which is expected to keep the monetary institution unchanged. But what investors will follow is what the bank will say about the state of the Japanese economy as well as about inflation.
Otherwise, expectations are for the CCB to reduce its inflation forecast for this year, ending March 2018, and for the next year.

Technical problem with quotes appreciated Apple by 348%

False quotes linked to some of the world's largest technology companies plunged investors' screens after the US markets closed on Monday.
Nasdaq stock exchange released astatement, saying that the information providers rather than the stock exchange were responsible for the wrong quotes.
The data was distributed by third parties after the US market closed earlier in the week, in connection with the Independence Day celebration.
The stockbroker has tested its information system, which has led to wrong quotes in vendors such as Google Inc. And Bloomberg LP, the parent company of Bloomberg News.
According to "wrong data," shares of companies such as Amazon.com Inc. and Microsoft was showing a decrease in its prices by more than 50%. At the same time, Apple's shares seemed to have risen by 348%.
For the last time, such a situation happened in 2013, but then stock trading was held for three hours because of wrong quotations.

ETFs are becoming a serious problem for the markets

The Bank of America warned that record-sized funds targeted to index funds could cause a serious problem.
The great popularity of this kind of passive investment schemes may lead to liquidity problems, alarmed by the financial institution.
According to the bank's report, the real stock available for S&P 500 components can be seriously overestimated.
Ultimately, this can lead to more serious fluctuations in stock markets, especially in times of decline, given that a company, a sector or the market as a whole is affected by one or another factor.
Passive index funds have become particularly popular among investors. They are currently managing funds of over $4 trillion, the report said.
The report of the financial institution also advises individual investors to target more under-valued parts of the market, and it is important to overtake index fund managers when it is time for them to rebalance their portfolios.
The other problem that emerges is that when the number of sellers exceeds the number of buyers seriously, the liquidity problem will result in a more severe fall in the indices.

Shares of Tesla - 155 or 464 dollars?

Tesla's shares lost more than 7% last week after Goldman Sachs's US investment bank downgraded its market share.
Tesla has announced that it has delivered 22,000 cars in the second quarter of the year. And while this is about to lead to overtaking deliveries compared to last year's when they were at 76,000, the result turned out to be less than expected.
To a great extent, the reason for the weaker supply was the acute shortage of 100 kWh-batteries, the company said.
The controversial data coming from the company, whose shares rose nearly twice since the beginning of the year, to new record highs in the past month, make analysts radically controversial about the company.
The lowest ratings for Tesla's shares come from Cowen and are at $155 a share, the highest is being at $464 from Berenberg.

Oil collapsed last week

Oil prices dropped severely last week after Russia rejected OPEC's offer to reduce production.
US crude oil lost nearly 3 percent of its value, a similar decrease was also noted with the price of the Brent.
In May, OPEC, along with Russia, decided to continue its production cuts by the first quarter of next year.
A little later, however, it became clear that the OPEC countries did not stick to the agreement reached.
Obviously, Russia's response to the proposal has come precisely as a result of non-compliance with OPEC members' restrictions.
Many market experts comment that the depreciation of oil may recover after its last increase from the last week and again see a test at its lowest levels.