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Oil reduces its looses Pound and Euro continue

Oil reduces its looses Pound and Euro continue

Oil reduces its looses Pound and Euro continue to perform positively

Oil reduces its looses Pound and Euro continue :

Evest continues to observe the world market movements, Thursday,
as a number of important events dominate the trading scene, amid weak trading in some markets because of the Christmas holidays.

 

The European Union and the United Kingdom are close to reaching an agreement,
and sentiment is now high towards the approval of the US stimulus package despite Trump’s threats,
which supported gold stock markets, and put more pressures on US dollar.

Oil rises, but is on its way to its first weekly loss since October

Global oil prices rose, Thursday, on the back of reducing the fears of slowing demand,
after data is released on declining stocks of raw materials in the United States.

 

March Brent North Sea futures rose 0.84% to $ 51.67 a barrel,
and February West Texas Intermediate crude futures rose 0.79% to $ 48.5 a barrel.

 

The decline in oil inventories in the United States increased investors’ hopes for a recovery in demand.

Official data showed that on Wednesday, oil inventories decreased by 0.6 million barrels,
in addition to a decrease in gasoline inventories in the country during the week by 1.1 million barrels,
to 237.8 million barrels, against expectations of an increase in stocks by 1.22 million barrels. At the same time,
distillate stocks fell by 2.3 million barrels to 148.9 million barrels.

 

This created a bit of optimism in the markets, as it played a role in raising the prices of oil to 2.3% on Wednesday.

As the dollar weakened, the price of commodities in dollar became more attractive.

 

Despite this, oil prices are preparing for their first weekly loss after the optimism of the vaccine developments.

It is going towards its first weekly loss since vaccines were developed in October.

 

With the new strain in Corona virus and the increase in the number of the world cases,
stricter quarantine measures have been implemented in more areas in the United Kingdom.

The weak dollar supports gold

Gold prices rose, Thursday, taking advantage of the decline in the US dollar,
as investors are betting on more monetary stimulus despite Trump’s threat to disagree to the package,
as it seems that the country is in need for it as early as possible,
for being the country is most affected by the virus on the planet of earth.

 

Gold rose 0.3%, recording $ 1876 an ounce, after rising for about 1% during Wednesday’s session.

 

Gold is currently supported by news related to the new Corona virus strain discovered in the UK,
in addition to the recent weakness in the dollar after the final approval of the United States stimulus package is approaching.

 

Gold is inversely correlated with the US currency,
so the green paper currency will determine the path of the precious metal through the coming days and weeks.

Investors are waiting for Joe Biden to assume the presidency to find out about his policy towards the dollar,
which Trump is  trying to weaken so as to increase exports.

 

According to Reuters, gold is trying to measure the level of $ 1888 an ounce, and if this happens, gold can reach$,1904 an ounce.

 

Asian stocks are in the green area…and expectations of continued rise European markets

 

Evest is following up how indices have performed in the world stock market sessions.

As Asian stocks remained positive for the second day in a row,
as optimism about the exit of Britain from the European Union and the US Corona virus aid package led to raising the mood amid year-end holidays in some markets.

 

The MSCI Asia Pacific Index outside Japan rose by 0.40%,
the Nikkei rose almost the same range to 26.668.35, and the Hong Kong Hang Seng Index rose 0.2%,
reaching 26.386.56. South Korea’s Kospi Index rose 1.4%, to 2.799.30 points. The Australian S & P/Ask 200 rose 0.3%, to record 6.664.80 points.

The Shanghaies Composite lost 0.%, to trade at 3359.12 points.

Expectations indicate that the European stock indices are trading higher today,
as the agreement between the United Kingdom and the European Union is very close to be achieved,
and it may be announced today according to international media.

 

The French CAC index may increase to 14 points, while the British FTSE index may increase to 38 points,
while the German Stock Exchange and other European Stock Exchanges will be shutdown because of the Christmas holidays.

 

European stock markets closed higher on Wednesday,
with the growing hope for a trade deal between Brussels and London,
as British media reported near the end of the trading day that there is a deal in the horizon.

 

In the US market, two of the three major Us indices ended the session with the green color on the back of positive labor market statistics.

 

The Standard & poor’s Index rose 0.1%, to 3690.01. It reached its highest level today.

All in all, the index rose to 14.2% so far this year.

The Dow Jones Industrial rose to 0.38%, to record 30.129.83 points.

 

The Nasdaq Composite Index declined to 0.29% to reach 12771.11.

The number of initial unemployment claims in the US reached 803.000,
and reached its lowest level through the last three weeks, which became as s surprise to the market,
as some analysts expected that unemployment claims to reach to 885.000.

 

The dollar weakens against a group of currencies…and a new rise in the sterling and the euro

 

News that Britain and the European Union became close to make a trade deal gave a push to the euro and the British pound to a higher level, which made the dollar declines.

 

The British pound continued to rise today, after increasing expectations for a trade deal between the UK and the European Union, while the dollar fell due to weak trading in the holiday season, and the increasing hopes of approving the stimulus package worth $ 9000 billion led to a decline in demand for the US currency.

 

The sterling rose 0.4%, to trade at $1.3546, after rising by 0.9% yesterday.

Where it finally managed to profit after 3 consecutive days of losses.

 

The euro rose 0.1%, to trade at 1.2203 against the US dollar, after rising by 0.2%, on Wednesday.

 

The US dollar index is trading at 90.2 after falling by 0.3%, yesterday. While the Japanese yen was unchanged, as it is trading at 103.56 per one dollar.

 

The Australian dollar rose at 0.8%, against its US counterpart yesterday, now is trading at $ 75.797. The United States currency fell at 0.1% to reach 6.5204 Chinese Yuan.

 

According to Reuters, the dollar index, which measures the performance of the US currency against a group of 6 major currencies , has lost more than 6% this year, as investors bet that the US Federal Reserve will maintain its monetary policy more easily and the fiscal stimulus will accelerate the economic recovery in 2021.

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