The holiday uncertainty urges investors to retreat

30 December, 2016

Crude Oil benchmark trades mixed with the spread of WTI and Brent rising to $3, due to the different expectations in market from both the US and the rest of the oil producing world. Brent advanced by 0.23% fuelled by the upbeat expectations of the OPEC cuts in January, while US Oil (WTI) trades in a red zone on the fears of the weekly EIA report, which might post gains in US inventories. The report from the API has already stoked concerns, projecting that the oil stockpiles rose by 4.2M barrels in the week ending on December 23rd.

EIA is projected to show reduced oil supplies by 2M barrels, at the same time gasoline reserves have risen by 1.3M barrels and distillates have increased by 1.8M barrels.

EU equities
The European stock indices have shown downfall, after the decline on Wall Street the day before. As Dow squashed the hopes of the mark rising over 20,000 points. The index showed the second-worst decline since November 8th, when the presidential elections took place in the United States.

EURO STOXX 50 eased by 0.11%, as France’s CAC 40 lost 0.11%, while Germany’s DAX 30 fell 0.33%.  Investors are also taking profits after the European Stoxx 600 closed on Wednesday at the annual maximum.

The British Pound
Earlier, the British data showed that house prices rose in December by 0.8%, which was higher than the projected increase of 0.2%. The annual growth was 4.5% compared to the 4.4% a month earlier, which also beat the expectations of the original 3.8%. The Pound rose slightly on the positive data, as the signals about the expending economy is generally supported.

The Eurozone M3 money supply grew by 4.8% in November, as it was expected to increase by 4.4%. The volume of lending to the private sector rose by 1.9%. The European currency trimmed a part of its yesterday’s declines rising to 0.45% against the US Dollar.

The US Dollar
The index which tracks performance of the US currency against a basket of six other majors fell by 0.40% to a 102.83 level, as the holiday uncertainty urges investors to retreat from risk.

Safe heavens
Gold continues to advance together with other safe heavens including the Japanese Yen and Swiss Franc, while yields on major government bonds have shrunk signalling that the sentiments on the market have turned risk-averse. Gold futures for the January delivery rose by 0.6% to $1.147 per troy ounce, as the Japanese Yen gained 0.58% with Swiss Franc adding 0.40% against the Dollar. German 10YR bond profits finally fell by 8.16% after a long-sustained rally, the US 10YR bond yields trade at 0.87% lower on a 2,484 level.

Source link  
Dollar strengthens on Fed talk

The dollar retreated from four-and-a-half month lows after the speech of Fed’s chair Janet Yellen, who noticed a stable economic recovery...

Is it the end of the US stock rally?

The demand for safe haven assets is declining, as the US stock market that was doomed to collapse remained stable. Investors are ready to jump...

Was populism defeated in Netherlands?

The Dutch voters resolutely put a brake on the populism wheel spinning across the globe such as the right-centrist party of Rutte, as election results showed his primary opponent Geert Wilder went up by a sizable margin...

US oil vs. OPEC - who will win?

US crude oil stockpiles soared for the ninth week in a row according to the EIA report...

Is Euro gaining momentum?

As for the Euro, we have pulled away from a strong level of 1.0522 forming a bearish trap...

Investors sail to safe harbours

The Dollar index flattened as Trump gave a speech ahead of the Congress meeting. The president left the market without any clues on the taxation issue saying it is postponed till the cancellation of Obamacare, which has been the biggest reform in healthcare...

Where is black gold heading?

The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech...

Is the European Union viable and needed?

The US dollar has erased the advantage gained earlier this week against its major opponents, as uncertainty hovers over the outcome of the tet-a-tet between Trump and Shinzo Abe...

The best investments for hedging political risks

Gold approached the broken level of 1241.40 + 50% Fibonacci level. Now, the price slowed down right next to our resistance area, therefore...