OIL
The price of Oil is proving resilient to current market drivers. Investors are betting on further recovery in demand and are still seeing some inflation risks. The combination of these two factors, along with the US data regarding oil inventories released by the American Petroleum Institute, showing a decline of supply, are supporting the price, bringing back WTI close to the resistance zone of $66/66.5 a barrel.
Carlo Alberto De Casa– Chief analyst, ActivTrades
EUROPEAN SHARES
European shares traded higher on Wednesday, preventing benchmarks from extending losses registered at the beginning of the week. It’s “inflation day” for most stock and FX traders today, as the US CPI report is due later in the afternoon. Investors are patiently waiting for these data as it will provide them with more hints towards the next move from the Federal Reserve and a possible shift in monetary policies. Although Fed officials already said it would be too soon to reduce monetary support, investors are cautiously assessing price pressure in order to get ready to switch their exposure from growth to more defensive values. Meanwhile, in Europe the Stoxx-50 index successfully rebounded over the lower band of its bearish flag, and the market will next challenge the 3,940 pts resistance before 3,960 pts and 3,980 pts.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
