Crude Oil extends a row of winning trades for the eight days in a row, as the optimism over OPEC cuts in January gives a push for the price growth. It is the longest streak of gains seen with Oil for the last seven years. The European equities move at a snail’s pace, as the biggest gains were seen in the UK 100 index advance the Pounds growth.
Precious metals posted declines, led by Palladium with a 0.8% loss. Gold has flatlined, holding near a 12-month low of $1.130 per troy ounce. Together with a slide of the Japanese Yen and Swiss Franc, this signals that the risk appetite has not been affected by lowered trading volumes and holidays ahead of the New Year’s celebrations.
On the currency market, the British Pounds value has slowly been diminishing for the last several days as the Brexit fears loom large. The risk of losing single market access and the rumours surrounding the rout of the financial institutions in the UK restrain the rally attempts of the currency. Although on Wednesday, the UK housing market showed signs of a slowdown as the number of loans for the house purchases had a material lag from the original expectations. Euro caved in from 1.0450+ area to vicinities of a 14-year low at the 1.04 level. This happened on the fear that the differential between the FED and ECB stimulus will widen further in 2017.
The US Dollar soared 0.30% as major opponents lost their poise with rumours stating that the FED is going to have three more rate hikes in 2017.
The emerging market equity indices trade in green driven by the gains of the energy sector. The Russian RTS rose 0.59%, Brazil Bovespa +0.13%, and the Australian ASX 200 rose 1.01% on the upsurge of the commodity prices.Publication source