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Positive trading for oil… A negative one for gold and exchanges

Positive trading for oil… A negative one for gold and exchanges

Positive trading for oil… A negative one for gold and exchanges:

Positive news about the latest vaccine news has boosted global markets.

AstraZeneca vaccine is said to be very effective if 3 months have passed for the second dose.

For the first time, the Sputnik V vaccine received positive feedback from a British trade magazine.

This by its turn supports the idea of expanding vaccines.

Evest is following up on today’s market developments, a day before the weekend.

 

Oil is on its way to record $60

Today, oil prices continued to rise after closing at their highest levels in a year yesterday.

Brent crude futures were able to reach $ 58.81 a barrel, rising at a rate of 1.74%.

West Texas Intermediate crude was trading at $ 56.08 a barrel, after rising close to 2%.

Positive dynamics were driven by improved market expectations for 2021,
as well as increased confidence in the effectiveness of the OPEC+ Ministerial Monitoring
The committee stressed the importance of immediate acceleration in balancing the oil market.

 

Yesterday, at the end of the meeting, Committee also said that oil demand
will remain uncertain in the near term but vaccine distribution will help to boost it.

 

On Wednesday, after the OPEC+ Ministerial Committee meeting, it was decided to maintain the current terms of the production cut deal.

In February, countries will decrease their production to 7.125 million barrels a day.

In March, restrictions will be slightly eased to 7.05 million barrels a day. In addition,
Saudi Arabia will voluntarily reduce its production by one million barrels a day in February and March.

 

OPEC+ members positively evaluate the success of the deal in its current form.

They are optimistic about market equilibrium in 2021. In the baseline scenario,
the alliance expects a year-round deficit with a maximum of 2 million barrels a day in May.

In an alternative scenario, there might be small surpluses during April and December.

US Energy Department’s oil reserves statistics were somewhat disappointing in the market.

The decline in reserves turned out to be symbolic as it reached only 0.99 million barrels,
against API’s initial estimates of 4.3 million barrels.

The decline came on back of maintaining stable production and restoration of net imports by 1.3 million barrels a day in addition to an increase for refinery use from 81.7% to 82.3%.

At the same time, gasoline inventories jumped by 4.5 million barrels against the expected growth of 1.1 million barrels.

 

Gold is falling

While US 10-year yields rose to their highest level in 3 weeks, the dollar index is trading near its highest level in 2 months.

This affected price of gold. This made gold unattractive now, causing it to be declined as an ounce retreated to $ 10 to reach $ 1,824.

BoE interest rate decision is determined to be announced today.

This is in addition to Challenger’s report for decreasing jobs.

The United States of America will announce its weekly initial claims for unemployment benefits.

According to a survey of analysts which is published by Trading Economics, a slight reduction from 847,000 to 830,000 is expected.

 

A disappointing performance in the US and Asian stock exchanges

On Thursday, stock markets in East Asia and Australia showed strong declines. The 3-days uptrend had ended.

This comes due to the tense liquidity situation in China, besides other factors. In recent times,
the Chinese Central Bank has shaken its money market policy.

Since the start of the week, the expectation of more aggressive stimulus measures in particular by the US government has led to a rise in prices in exchanges.

On Wednesday, recovery in Wall Street continued in a moderate form but in an obvious lower case.

The strongest downtrend was in Seoul and Hong Kong stock exchanges.

Chinese CSI 300 Index which includes the top 300 stocks in Shanghai and Shenzhen Stock Exchanges, has recently fallen to 0.42%.

In South Korea, Kospi Index retreated by 1.5%. Market participants indicate that decline is due to profit gaining after rising for 3 consecutive days.

 

Shares included in the index were significantly lost.

Samsung Electronics fell by 2%.

Chipmaker SK Hynix lost 3.5% while LG lost 4.9%.

As for shares of Amorepacific Cosmetics company, its stock rose by 2.2%, after positive expectations for earnings.

 

In Tokyo Stock Exchange, Nikkei 225 index fell 1.0% to record 28,353 points.

Market focused on the season of reports, as shares of Kao,
soap making company fell by 7.7% after net income in the fourth quarter fell below market expectations.

At the same time, Sony’s stock jumped 9.3% and net income rose at a rate of 62% in the third quarter,
thanks to the rise of gaming and electronics revenues.

In Hong Kong, Hang Seng Index is down 1.3% while Shanghai Composite in mainland China is down 1.4%.

Sydney Stock Exchange closed its trading at 0.9% lower.

AGL Energy lost 3.6%. It will announce a fee of 2.69 billion AUSTRALIAN dollars for the first half of the fiscal year.

This is largely due to a decline in prices of energy than expected.

Origin Energy fell by 6.9%, as it lowered its earnings forecast for the energy market division.

On Wednesday, US stock markets anxiously hovered between moderate gains and losses.

Strong numbers of tech companies like Alphabet and Amazon as well as the job market were unable to provide more support.

 

Alphabet rose by 7.3%after it climbed to a high record. At Amazon,
the joy of good numbers clouded the fact that the company’s founder and CEO, Jeff Bezos announced his registration.

The stock lost 2.0%. In addition, the market boosted hopes for more economic stimulus from the US government under new President-elect Joe Biden.

Dow Jones Industrial Average ended its trading by 0.12% higher to reach 30,723.60 points while the Nasdaq index lost 0.12% to record 13,610.54 points.

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