? Oil prices show strength amid reports of OPEC led production freeze

? Equity manages to regain stability aided by oil’s strength

? VIX decreases to 20.5, signaling pause in global equity turmoil

? S&P adds 2.8% during week – best since November

? January minutes confirm low likelihood for a Fed rate hike in March

Markets are regaining their confidence as stress levels decrease – the Chicago VIX Index decreased to a level of 20.5 by the end of the week, returning to those of the start of February. Much of the regain of market stability can be attributed to Oil prices, which exhibited noteworthy strength over the week, the kind that was quite absent for a while. The strong session was backed by reports of a joint output freeze by OPEC and Russia, hopefully restraining the black gold’s oversupply. Prices peaked at around USD 31.5 per barrel on Tuesday, but refused to exceed that, inter alia amid expectations that the Saudis may want to freeze production, at most, but likely not scale it back. Additionally, the fact that no rumors of a cut surfaced has helped convey the idea that OPEC is hence pleased with current prices, trimming the outlook of an upside to oil. Also preventing further increase of oil prices were reports that Iran refuses to meet with oil producers and agree to the cuts. Meanwhile, indications for the continued eroding of the U.S. fracking industry continue to pour in with the U.S. oil rig count down by 26 another to 413.

Equity Indices, similarly are in green weekly territory. The stronger start of the week for oil correlated strongly with equity, seeing the S&P500 add a weekly total of 2.8%, after rising 3.3% between Tuesday and Wednesday. The weekly increase proved as most positive for the U.S. index since last year’s November. In China, the Hang Seng scored a 5.3% weekly gain, 4.4% of it between Monday and Tuesday’s session. In Europe, the DAX increased a total of 4.7%, most of it due to a positive Wednesday-Thursday rally.