Market Overview

13 October 2020 11:50

Mark Goichmann

Shares and crude prices have been paradoxically climbing since the beginning of this week amid the worldwide expansion of a second wave of the coronavirus. Seemingly, risky assets like stocks and oil should be at severe pressure as infections spike. But, an overall optimistic vibe has made controversial moves of these assets possible for certain reasons. Sitting U.S. President Donald Trump has unexpectedly advocated a bigger relief plan for the American economy that made even his Republican fellows disconcerted.
7 October 2020 10:14

Mark Goichmann

Crude prices slipped up in the middle of the week as risk on sentiment weakened. Since the beginning of this week rising appetite for risk lagged behind higher stock markets and crude prices. Brent crude benchmark climbed from $39 per barrel to almost $43 amid optimism as U.S. President Donald Trump quickly recovered from COVID-19, which he tested positive for last Thursday. Another reason for optimism was the assumption that  negotiations over a coronavirus relief bill up to $2.2 trillion was seemingly reaching an end.
16 September 2020 10:37

Mark Goichmann

Crude prices performed a temporary upside move as oil output fell by 21% in the Gulf of Mexico as the Sally hurricane approached the Gulf coast. Some upside factors, like an expected fall in crude reserves that is due to be announced today by the Energy Information Administration after The American Petroleum Institute (API) announced that reserves in the United Stated dropped by 9.5 million barrels also pushed prices higher.
9 September 2020 10:03

Mark Goichmann

Renewed fears of a possible U.S. Debt selloff by China shook the market after Beijing-based Global Times tabloid newspaper under the auspices of the Chinese Communist Party published an article last Thursday quoting Xi Junyang, a professor at the Shanghai University of Finance and Economics, that was saying that “China will gradually decrease its holdings of U.S. debt to about $800 billion under normal circumstances”.  Xi Junyang has not provided any timeframe of such possible selloff. But, he added that “China might sell all of its U.S. bonds in an extreme case, like a military conflict.
2 September 2020 10:51

Mark Goichmann

Risky assets inspire crude prices. The upward trend in Brent crude benchmark lifted prices up to the $46 per barrel mark. This week Brent crude attempted to conquer important resistance level of $46.2 per barrel that was pinned before as a post pandemic high. However, major drivers of crude rally are beyond oil market itself. The primary driver is the Federal Reserve (Fed) intention to skip the inflation target of 2% while maintaining control over interest rates. That means interest rates may remain at ultra-low levels for a long term even if the inflation will exceed 2%.
27 August 2020 08:37

Mark Goichmann

The single European currency has optimistically endured  the market turbulence over recent weeks. The rally in the EUR/USD went almost to the 1.20 level with a recent correction to 1.1750-1.1850. The Euro is acting like a risky asset in contrary to the safe haven U.S. Dollar. Market sentiment is seen to be on a positive note as it is likely almost entirely ignoring the negative notions. The rise of the second pandemic wave in Europe is seen not to disrupt the European currency too much. The surprising satisfaction of the U.S.
19 August 2020 06:51

Mark Goichmann

Bitcoin, a major digital currency, rose by a third since the end of July – from $9,165 to $12,200 on Tuesday. Although the price of Bitcoin stepped back a little to $11,754 on Wednesday morning, the digital currency has made a tremendous upward move from the level of $4,000 since mid-March. This digital currency is assumed by the market as a risky asset and an alternative to the U.S. Dollar. The Greenback may not be in favour in the investors’ eyes. The U.S. Dollar index that represents a basket of six major currencies to the Greenback fell from March highs of 104 points to 92.
11 August 2020 12:28

Mark Goichmann

Crude prices are rising moderately above $45 per barrel of Brent crude benchmark amid cautious optimism in the market. The VIX Volatility index weakened by 4.2% to 21 points on Tuesday. Market inclination to risks is rising as additional liquidity from another stimulus package is expected. U.S. President Donald Trump wrote in his Tweeter that Democrats had reached out to the White House to restart negotiations on coronavirus aid. "So now Schumer and Pelosi want to meet to make a deal. Amazing how it all works, isn’t it," Trump tweeted.
5 August 2020 09:41

Mark Goichmann

Low inflation in developed economies have become a curse since the Great financial crisis of 2008. It discourages producers, as inconsiderable rise of prices means low demand and difficulties in sales. Thus, the growth of the economy is also under threat. Developed economies have been struggling for several years to meet the inflation target of two % and yet have hardly succeeded in it. Many quantitive easing programs and lowering interest rates throughout the globe have been tailored to meet this ultimate goal. Such efforts were made consistently by the U.S.
29 July 2020 07:08

Mark Goichmann

Crude prices have stabilised over the last week of July within the range of $43.2-44 per barrel of Brent crude. Oil prices are balanced by several counteractive factors. Crude output is rising in countries that are not linked to the OPEC+ deal, namely the United States. The number of oil rigs is rising in the U.S. for the first time since March. According to the recent data published by Backer Hughes, crude output rose by 0.1 million barrels per day to 11.1 million bpd. Rising production curbs prices from a further climb. Newly emerged signs of U.S.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.