Last Friday world financial markets closed with a slump of major indices. The lingering reasons for that are conflicts in Ukraine and the Middle East, Argentina’s debt problems as well as pessimistic data for the US labor market.
On Friday, the U.S. Department of Labor released jobless statistics that indicate that the unemployment rate went up from 6.1 to 6.2 percent whereas the number of new jobs didn’t increase as much as analysts had expected.
European trading resulted in the British FTSE falling 0.76 percent down to 6,679.18 points, the German DAX 30 plunging 2.10 percent down to 9,210.08 points and the French CAC 40 shedding 1.02 percent ending the trading session at 4,202.78 points.
In Russia, the MICEX index fell 0.35 percent down to 1,374.83 points and the RTS index – 0.54 percent down to 1,212.74 points.
The USA’s Dow Jones Industrial Average dropped 0.42 percent getting to 16,493.37 points, the Standard & Poor’s 500 fell 0.29 percent down to 1,925.15 points while the NASDAQ lost 0.39 percent reaching 4,352.64 points.
The cost of the September WTI oil future on the NYMEX went down by $0.29 and made $97.88 a barrel. On London’s ICE, the price of the September Brent oil future got lower by $1.18 and reached $108.84 a barrel.
Oil prices continue to fall due to the OPEC’s increase of oil output in Libya and the USA’s bigger exports of petroleum products. According to media sources, in the past month of May the United States stepped up its exports to 288,000 barrels per day – the highest figure since the beginning of the 21st century.
On the global Forex market, EUR/USD is experiencing a correction from the strong support of 1.3380. The correction is expected to go to 1.3460. However, under favorable conditions (absence of negative macroeconomic data for the euro), the pair can move to around 1.3530.
Anna Gorenkova, NordFX AnalystPublication source