Oil is sticking to rise… Positive trading in gold markets
Oil is sticking to rise… Positive trading in gold markets
Oil is sticking to rise… Positive trading in gold markets: Covid-19 vaccine from Pfizer and Biontech provides protection
against virus strain that is most widespread in South Africa.
Two companies announced that a laboratory study showed this through publishing the results
of the study in the New England Journal of Medicine.
Although any news related to the success of vaccines gives a big push to many markets and the expectation
that life will return to its normal case and the desire to do so sooner, this was not the main driver of markets today
as there were single drivers for each market separately.
Evest is following up with you about these events and how they affect markets.
Oil still knows its way to rising
Today, oil prices continue to rise as US crude oil production has decreased during the last few days.
US crude oil inventories declined during last week.
West Texas Intermediate rose by 0.9% to record $ 61.70 a barrel and Brent crude
increased by 1.2% to reach $ 65.10 a barrel.
American Petroleum Institute announced that crude oil inventories retreated by 5.8 million barrels last week.
At the same time, gasoline stocks are said to have increased in a range of 3.9 million barrels
while distillates have also increased by 3.9 million barrels.
Official inventory data from Energy Information Administration is expected to be released afternoon.
In the United States of America, a cold spell led to a massive drop in crude oil production.
In general, production in the United States has decreased by a third, according to Bloomberg.
Growth was further boosted by the recent reduction in oil production
in the United States of more than 2 million barrels a day.
The reason for this is due to unusually cold weather in the Gulf of Mexico
which among other things has led to halting oil refining in the main US oil-producing province.
Several production refineries were closed.
This affected about 2 million barrels of production in Texas.
So, it may take weeks for production to return to normal.
In today’s EIA data, the latest developments in production are unlikely to be taken into consideration.
Meanwhile, investors are looking forward to OPEC +countries which will meet again at the start of March
to negotiate further steps on the oil market.
If prices continue to rise, this may cause OPEC +countries
to increase production volumes faster than previously expected.
Saudi Arabia will play a special role from April, as Saudi Arabia decreased production volumes
by an additional 1 million barrels in February and March.
Prices of raw materials have increased in global markets since the start of the year as they had grown by 16%
on the back of expectations of the positive impact of vaccinations
in addition to statistics that show a steady decline in US stocks during the epidemic.
On another side, global investment banks such as Goldman Sachs and GBMorgan Chase issued reviews yesterday,
as oil prices, this year are expected to record $ 80 a barrel.
Within a few years, they will be able to return to $ 100 a barrel.
Gold is recovering
On Thursday morning, gold prices positively presented themselves after they recovered,
as yellow metal futures for April delivery rose $ 9.20 to record $ 1782.00 an ounce.
January figures for US retail sales were better than expected as they increased by 5.3% compared to last month.
There was also a positive surprise to report on industrial production of an increase by 0.9%.
Federal Reserve meeting’s report which was released on Wednesday evening did not provide any new information.
Today, market participants are following many events.
In particular, two US economic indicators are likely to attract more attention,
namely Philly Fed economic expectations and the initial weekly jobless claims.
According to a survey of analysts published by Trading Economics,
the number of newly unemployed people is said to have decreased from 793,000 to reach 765,000.
Declines in some Asian, American, and European stock exchanges
Tokyo Nikkei 225 index closed today’s session down by 0.19% to record 30,236.09 points.
Shanghai Stock Exchange also reopened today after a long close because of Lunar New Year’s celebrations.
Hong Kong Exchange was affected by a decline of 1.23%,
while the Sydney stock exchange settled but in Seoul retreated by 1.19%.
Participants in Asian markets still fear deflation in the US
especially after US PPI was published yesterday, which jumped 1.3% in January making the largest increase since 2009.
On the macroeconomic front, Australia’s unemployment rate fell to 6.4%
in January compared to 6.6% in December and better than 6.5% which analysts had expected.
29,100 new job opportunities were created compared to the expected 30.000 jobs, besides, 50.000 new jobs.
Labor force participation rates slightly decreased to 66.1% from the previous 66.2% and compared to the expected 66.2%.
In the United States of America, Dow Jones Industrial Average increased by 90.27 points to reach 32,613.02 points yesterday.
S&P 500 remained virtually unchanged at a rate of 3,931.33 points
while Nasdaq Composite closed at a rate of 0.58% lower to reach 13,965.50 points.
Based on OTC exchange rates, the German DAX could open at a rate of 0.1%.
Eurostoxx index rose by 0.2% but French CAC index rose by 0.3%. British FTSE index also rose by 0.3%.
On Wednesday, European stock markets closed in a loss for their indices
as FTSE EuroFirst 300 index retreated by 0.70%, while Stoxx Europe 600 index fell out of 0.75%.
Eurostoxx 50 index declined by 0.71%.
On Wednesday, in London, the FTSE index fell by 0.56%, pulling away from its highest level during a month on Monday.
German DAX was down by 1.10%. In Paris, the CAC index closed at a rate of 0.36% lower.
In Milan, the stock market index decreased by 1.12% after reaching its highest level in a year on Monday.
On Wednesday, Madrid stock Exchange closed down 0.38%.