Daily market commentary: Oil prices hit a fresh multi-year high

OIL

Oil prices hit a fresh multi-year high during early Monday trading, as traders continue to ride the bullish wave ahead of this week’s OPEC+ meeting. Oil prices have been driven by a scarcity in supply as global demand increases. With the main producers so far sticking to their quotas and talks between US and Iran failing to bear fruits, the rising prices are testimony to the markets betting that despite the expected increase in demand normally coinciding with the Northern hemisphere summer, OPEC will stick to its current policy of not deviating much from current supply levels.

Ricardo Evangelista – Senior analyst, ActivTrades

EUROPEAN SHARES

European stocks were steady on Monday, with no significant moves by most indices, as prices continue their very short-term consolidation. Most benchmarks are still trading sideways, albeit still near record highs, as investors remain hesitant to drive prices higher amid lingering uncertainty about inflation and the next policy moves by the Fed and other central banks. Even if some traders doubt the “transitory” effect of inflation, expecting prices to keep on rising over time, the fact central banks keep on providing considerable support to markets remains a solid bullish market driver and justifies the “risk-on” approach. However, many already have their eyes towards upcoming macro data, with this week’s US Jobs Report due on Friday while the earning season looms around the corner.