Isolate Trump, Oil and gold are in a positive position
Isolate Trump, Oil, and gold are in a positive position
Isolate Trump: All eyes are on to isolate Trump, Oil and gold are in a positive position
Today, markets are awaiting the US House of Representatives’ vote on whether
the outgoing US President Donald Trump should be impeached after he was accused of inciting violence and rebellion.
President had called on his supporters to besiege Capitol building while the US election
results were approved as a form of pressure not to recognize elections results which he described as “stolen and fraudulent”.
However, things developed, and a number of supporters stormed Capitol.
This led to the killing of 5 people, besides other riots.
Markets evaluate these results differently considering their effects on trading markets,
which takes focus a bit on Biden’s plan which is supposed to be announced tomorrow.
Evest is following up market movements today amid a political state of uncertainty.
Oil is at its best levels in less than a year
Oil rose today, supported by a decline in US crude stocks for the fifth week in a row,
to record its best levels in less than a year.
The cost of March crude futures of Brent crude topped $57 a barrel to rise by 0.78%.
The last time Brent crude was traded at this level was last year on February 24.
The US West Texas crude
As for US West Texas crude, it rose by approximately 1% to record $ 53.73 a barrel.
The last time it reached this level was last year on February 20.
Although the biggest support came as a result of the decline in US oil inventories during last week,
it is also affected by the negative dynamics of the dollar’s price against other major global currencies.
The US commercial crude oil inventories
The decrease in US commercial crude oil inventories reinforced the idea that oil demand has begun to increase.
According to yesterday’s estimates announced by American Petroleum Institute,
commercial crude oil inventories of the country fell more than what was expected
by 5.8 million barrels Las week compared to the previous one.
It had been expected that stocks would decline by only 2.7 million barrels.
The US Energy Department
US Energy Department will publish official data on this topic later today.
Analysts expect that Ministry will announce a decrease in reserves by 2.26 million barrels.
Expectations about an economic support package which is supposed to be implemented by Joe Biden,
who was elected as President of the United States of America after taking office on January 20,
also supported prices’ rising
Biden who promised trillions of dollars as an economic support package
last week is expected to announce details of the package tomorrow.
On the other hand, despite the increase in cases of Coronavirus Covid-19 especially
In European countries and the United States of America, oil prices indicate a return to
pre-epidemic levels thanks to the positive atmosphere surrounding vaccination operations.
The European Medicines Agency (EMA)
Yesterday, the European Medicines Agency (EMA) announced that AstraZeneca in cooperation
with the University of Oxford has received an application to use vaccine against Covid-19 in European Union.
This will be the third vaccine allowed for use in the European Union.
Dollar weakness revives gold
Yellow metal prices rose today as the dollar fell again after the decline of Treasury yields.
With the approaching announcement of a major stimulus package, the attractiveness of gold as a hedge against inflation has strengthened.
Gold rose by 0.2%, to trade at $ 1858.5 an ounce.
Now, investors prefer gold for they see it attractive,
especially since the US dollar is weak and real returns are remaining negative.
Yields of US Treasury bonds for 10 years have fallen from their highest levels in 10 months.
This in its turn affected the US dollar and made gold cheap for holders of other currencies.
Meanwhile, traders in this market are looking to the major stimulus plan that US President
Joe Biden will announce tomorrow, as according to his description, it will be in billions of dollars.
This makes the gold in a strong position now.
On the other hand, the number of cases of Coronavirus Covid-19 has exceeded 91 million around the world.
This means a continuing spread of the virus besides fear of inflation which increases support of gold.
Despite the distribution of vaccines and the beginning of vaccination operations more than a month ago,
gold traders are still concerned about whether the situation could change in the near term,
especially with the tightening of health measures in a number of European countries and China.
Markets are in a mixed position
In the Asian stocks market, the Australian Stock Exchange managed to rise today
due to the support of gains of four major Australian banks. ASX 200 index rose by 7.5 points to record 0.1%,
to close at 6686.6 changing between tight losses and gains throughout the day before advancing later.
Japanese Nikkei index rose by 1.04%, to reach 28456.59 points. Kospi rose by 0.71%,
to record 3148.29 points, while the Hang Seng Index declined by 0.05%, to reach 82.261.95 points.
Shenzhen index rose by 0.61%, to record 15.365.43 points.
In the United States of America, the three main indices on Wall Street were traded in a mixed position.
S&P 500 and Dow Jones rose while the Nasdaq index fell sharply but it managed to rise during the last moments to end trading in a positive position.
Standard & Poor’s rose by 0.04%, to reach 3801.19 while Dow Jones rose by 0.19%,
to record 31.068.69 points but Nasdaq rose by 0.28%, to trade at 13072.43 points.
The dollar is falling again
In Foreign Exchange Markets, Evest is following up the decline of the US dollar against a basket of major currencies,
as it fell against the Japanese yen by 0.12%, to trade at 103.462 while it fell against the Chinese Yuan by 0.02% to trade at 6.4597.
Euro rose against US Dollar by 0.03%, to reach 1.2207, while Sterling rose by 0.19%, to record 1.3686.
New Zealand dollar rose by 0.02%, to trade at 0.7228 but the Australian dollar settled against US currency at 0.7769.