OIL The demonstrations seen in Washington had little impact on the oil price, generating a quick fall to $49.50 for the WTI benchmark, which was easily absorbed by the markets. The price has since jumped strongly back above $50 and in the first few hours this morning continued the recovery, reaching $51 while Brent is…
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OIL The oil price is rebounding on the unexpected outcome of the OPEC+ meeting. The real surprise was Saudi Arabia announcing a voluntary cut of 1 million barrels a day that will be put in place over the next two months. The market reaction showed enthusiasm for the decision, with oil jumping by 5% to…
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EUROPEAN SHARES European markets had a mixed opening on Tuesday after the biggest sell-off of the first trading session of a year since 2016. Despite vaccines being deployed, record virus numbers in many areas as well as full lockdowns in a few hotspots, like England, are denting this week’s market sentiment. While many traders keep…
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From a technical point of view, the key resistance around $1,900 has now clearly been broken. Moving averages also flipped back to a strong buy signal in the week before Christmas, with both the 50 and 100 SMAs golden crossing the 200. Buying in now looks like a significant risk, though, given clear overbought conditions…
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WHAT WILL DRIVE GOLD IN 2021? 2020 proved to be a positive year for gold with investors rushing to the long-established haven asset as the coronavirus pandemic triggered an economic and health crisis, but what are going to be the main market drivers for 2021? After the black swan event dominated 2020, the lingering effects…
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EUROPEAN SHARES European stocks edged slightly higher on Wednesday, boosted by easing UK-EU tensions, with transaction volumes falling as we get closer to the end of the year. Investors continue to drive stocks higher, aiming to offset and fill the bearish gap left open at the beginning of the week, while market sentiment has received…
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What to watch Cintas: Uniform and business supplies firm Cintas has added 28.6% to its share price year-to-date. While mass work from home has reduced demand for some of its services, it has led to a surge in demand for cleaning and disinfectant supplies. The firm delivers its latest set of quarterly earnings today, where…
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OIL The oil price was hit by the risk off seen on markets in the last 36 hours. Growing fears about the new UK variant of the coronavirus, generated a sell off on both European stocks and oil. For WTI we have a quite significant support zone between $46.50 and $47 per barrel, which triggered…
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The pound’s fall today has been quite dramatic on the chart, with none of the 50, 100 or 200 SMAs providing any clear support. However, buying volume has been unusually high for the time of year so far today, so there is clearly some demand to push sterling back up toward the value area at…
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What to watch Heico: Aerospace and technology firm Heico has added 16.6% to its share price year-to-date, taking its market cap to $16.9bn. The company reports earnings for the three months ended October 31 on Monday, after beating estimates in each of the past four quarters. Last week, the firm announced an increase in its…
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