A Brave New Day For Global Markets

Global markets where in good moods today. The Asian Market remained bullish throughout, initially propelled by soaring Oil prices followed by upbeat earnings reports from the Japnese Glass, Fishery, and Banking sectors.

EU stocks joined the party, Germany’s DAX was ranging between 12,928.44 – 13,034.51 up 0.33%  UK’s FTSE climbed 0.32 %  seen  between (7,629.75 – 7,688.04).

Wall Street came in strong, with NASDAQ surging  6,888.75 – 6,943.25, the Dow Jones extended gains by  0.61%  to 24,692.21 as NVIDIA stocks jumped 1.07%.

USD took a breathe ahead of PCE inflation data allowing other majors to stage a mini-comeback.GBP/USD ahead UK’s construction Output & Industrial Production reports surged only to dip as markets released, the BOE was likely to postpone its interest rate decision and the results were disappointing.

Global oil prices continued the upstream bolstered by Wednesday’s crude oil inventories report which indicated a draw of – 2.197M amid the US. imposition of the sanctions on Iran after withdrawing from the Joint Comprehensive Plan of Action aka Iranian Nuclear Deal. Gold, Silver, and copper also rose,

Markets expect further upside for the USD as investors continue to weight the US impact of US pullout.

 

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Oil Surges, U.S. Exits Iranian Nuclear deal

 

Once again Oil prices have been bolstered back to it’s 3 and half year highs, following the withdrawal of the U.S. from the Iranian nuclear deal, ahead of today’s Crude Oil inventories report by the Energy Information Administration. (EIA). Crude Oil was seen ranging between $69.85 – $71.16 with further upside till the report is released.

Other commodities like Gold, Silver, and Copper have been lingering to the downside, as the USD, (Greenback) gained momentum to 4 months highs as yields climb up.

Global stocks began the day on a rocky footing, after digesting the news of Donald Trumps’s exit from the Iranian deal. However, EU share surged lead by UK’s FTSE  upbeat corporate earnings reports from companies like Voda phone and Royal Dutch Shell.

The day will be teaming with opportunities for trading as the day’s events unfold.

USD  Stocks are expected to rise.

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Markets’ Reaction to Trump’s Tweet on Iran

WTI Oil prices are restless, as some investors took profits ahead of today’s tweet from Donald Trump which will announce his stance on the Iranian deal.

Markets are nervously anticipating Donald Trump’s decision on the Iranian deal. Some think he may just pull out which could be possible but unlikely. Rather, he may suggest renegotiation of new terms.

Meanwhile, markets are cautiously marching around, as Oil oscillates between $69.59-$70.25

  • Gold, which receded earlier in the Asian markets, is now picking up ranging between 1,311.10 – 1,317.50 with some potential upside. Investors attempt to hedge ahead of the U.S. JOLT job reports and Trumps revelations.
  • Asian markets were on an upbeat trend, driven by the tech industry earnings, which bolstered the EU markets. UK’s FTSE may surge 0.2 % while Germany’s DAX 30 pushes 0.1 percent.
  • GBP was bullish in the early hours after returning from its Bank Holiday on Monday.  It did, however, retract on disappointing data from (Halifax House Price Index) reporting 2.2% instead of 3.3%
  • EUR is also sliding on downbeat German reports related to German Exports.
  • JPY sees a bit of demand amid political uncertainties some investors prefer it as a safe haven.
  • Crypto market is resiliently ranging despite Warren Buffet’s swing at them, and ongoing regulatory pressures from various countries amid egoistical bunches from supporters of individual coins
  • The day is set to be full of surprise and corrections while “spread betters” await reports from the US JOLTS job reports and The American Petroleum Institute (API) on weekly Crude Oil stocks, which may indicate a build-up.

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Positive start for Global Markets & Oil

Global markets opened on a positive note today. Asian Shares, gains were mostly propelled by the U.S. Tech industry such as Apple, Tesla, Amazon, and Facebook to name a few. It is expected, that these up winds were the catalyst behind the EU stocks. U.S. Market participants are anticipating Earnings reports from some 40 companies to impact the S&P 500 (USA 500) and other indices.

Crude oil prices leaped to their highest since 2014, crossing the $70 threshold. Driven mostly by Venezuelan and Iranian woes with a projection for further upside if the tension is not averted, despite fundamentals pointing to increased U.S production.

As the U.K. celebrates its early bank holidays, the GBP remains subdued heading for its 100-day support levels recorded 1.3487. The currency was seen ranging between 1.3527 – 1.3565 with uptrends ahead of the Bank of England (BOE) rate decision later this week.

The EUR does not seem to be faring well amid a deluge of disappointing data such as the Germany Factory Orders which fell by 0.1%.

The USD consolidated near 4-month highs. Pricing in June might be in for another possible rate hike.

Last week’s NFP results were noted as positive, despite a miss of 26k from the forecast of 194k. The unemployment rate dropped from 4.0% to 3.9% a catalyst cementing upcoming rate hikes.

Gold prices receded along with other commodities. The U.S. dollar index, which gauges the USD’s strength versus a basket of six major currencies, surged to $92.59.

Cryptocurrencies slipped as Azerbaijan warns of taxation on gains in this arena.

Markets participants look to upcoming FED speakers comments for direction.

U.S Non-Farm Payrolls & Profit Taking.

Market participants are anticipating the day’s release of the U.S. Governmental payrolls report (NFP) with the expectation of at least 86,000 additional new employees. Forecasts suggest 189k vs 103k from the previous month with upside trends for the USD.

The report comes on a day when investors seek profit-taking ahead of the weekend. Thus amid disappointing Spanish, Italian, and EU Purchasing Managers Indexes (PMI) EUR/USD gave up hopes ranging between 1.1956 – 1.1995 with a possible downside, along with GBP/USD which continues to slide due to political uncertainties and ongoing Brexit saga.

Perhaps ECB Mario Draghi may finally get what he has been hoping for EUR “PARITY” with the Greenback USD

Meanwhile, US stocks have been diving down on disappointing Earnings reports and possible Trade war outbreaks which, thus far reports points to a conclusion without any major breakthrough except for agreement on some front though details have been obscured for the time being. With Alibaba reporting and Buffet’s purchase of APPLE, shares reversals are not ruled out

On the other side of EU, stocks flourish gains capped by a miss in the earnings from the Banking sector.  Asian stocks were mostly low all throughout as Japan enjoys another holiday (Greenery Day).

Oil continues to be influenced by increased U.S. productions activities and political tensions surrounding Iran, the USD, remains poised for possible up trends ahead of the Baker Hughes rig count which could reveal and increase WTI Oil was down 0.18% to $68.31 ranging between 68.14 – 68.64 jumping with small gains and losses. Gold was met with a similar fate with other metals.

Interestingly the Crypto-currencies thrive adding on to gains the BTC/USD  was seen between 9,177.7 – 9,875.0 ETH/USD caught between 716.99 – 808.79.

Despite the volatility surrounding the release of today’s events, it is a great trading day.

 

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The Aftermath of U.S. Rate Decision Part II

The USD has been swing between tepid gains and loss as markets digested the day’s events. Clues from the day’s events have thus far been mixed, U.S. ISM Non-Manufacturing PMI was disappointing keeping the USD corned.

GBP was also unable to hold onto recent gains as disappointing Service PMI weighs, a reported 52.8 vs forecasted 53.5 was too heavy on the cable was seen ranging between   1.3542 – 1.3630 at the time of print dropped -0.22% to 1.3545. In the basket of major currencies EUR, AUD & JPY were the few to cling on to gains.

In the commodities arena both Crude and Brent gave up earlier gains assumed to come from supply cuts in Iran as Iran attempts to defile possible sanctions profit taking and new of possible increase in rig count limits upside movement for oil.

Meanwhile the Crypto blossom with Bitcoin tacking in 1.9% from its previous close.Safe havens like Gold, along with other metals were very bullish

Meanwhile, Global stocks turned bearish as investors look to the usual pre-weekend profit taking coupled with a gloomy release of earnings reports

Eyes remain fixed on Friday’s U.S NFP Non-Farm Payroll to possible left the USD on an uptrend ahead of the weekend.

 

 

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