Market Analysis

Oil is benefitting from the current “risk-on” trading stance

OIL

Oil is benefitting from the current “risk-on” trading stance, with the outlook especially boosted by China’s surprising trade surge as investors now expect increased demand for year-end. In addition, the fact that the US Dollar is nearing its 30-day low is also sustaining market sentiment around oil markets. Technically speaking, the situation looks reassuring as WTI is still trading inside its bearish flag, close to its upper band, with the prospect of the long-term bullish trend continuing. The market will however have to climb above $70 to unlock further targets around $71, then $73.45 and $76.15 by extension.

Pierre Veyret– Technical analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 

European markets traded sideways shortly after the opening bell, following a strong trading session in Asia boosted by Japan and China, while US futures also point to a firmer open. The positive news came from China’s surprising surge in exports, which was of course welcomed by stock investors as it confirms the solid global ongoing recovery, despite the spread of the Delta variant. The likelihood of the hawkish shift from the Fed being delayed combined with reassuring rising demand in many sectors are boosting investors’ appetite for risk assets, which paves the way to new record highs this week. However, market operators are likely to keep an eye on macro data, especially in Europe where the release of CPI and GDP data from eurozone countries are highly anticipated alongside the ECB’s rate decision on Thursday.

Pierre Veyret– Technical analyst, ActivTrades

Source: ActivTrader

 

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