Market Analysis

Strong gains for the oil following stricter sanctions on Russia

OIL

WTI crude oil looks set to end the week with strong gains, being currently up by almost 15 percent in relation to the close of market last Friday. The price of the barrel found support above the 100 dollars mark, a scenario that is likely to continue, and perhaps even intensify, as the markets price in the growing imbalance between increasing demand and insufficient supply. As Western sanctions on Russia pile up, it is likely that the country’s exports of oil will be reduced, exacerbating the ongoing supply-side pressures that have driven recent price spikes.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

GOLD

Gold prices are rising during early Friday trading, as flows towards haven assets increases. Developments in Ukraine continue to influence the levels of risk appetite in the markets, with the latest being the Russian attacks around the Zaporizhzhia nuclear power plant, which raised the levels of anxiety amongst market operators. As the war continues to rage in Ukraine, the price of the precious metal is likely to remain supported due to the increase in demand for refuge assets, although US dollar strength is capping the scope for such gains.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 
Equity markets continued to fall globally at the start of the last trading session of the week, amid further escalation and uncertainty from Eastern Europe. Despite an early slight bullish reaction over some technical support levels, in an attempt from the markets to pare some of yesterday’s losses caused by fears over a battle next to the biggest nuclear plant in Ukraine, the trading mood remains strongly “risk-off”. Demand for safer havens is rising, especially as investors’ sentiment remains under the pressure of a not-so-encouraging short to mid-term outlook brought by the prospect of surging commodity prices, higher inflation as well as slower growth. That said, investors may remain patient this morning as a crucial US Non-Farm Payroll data for February is looming in the afternoon, which may provide investors with more clues about the real shape of the US economy as well as the next monetary moves from the Fed, even though a quarter basis point rate hike is now fully priced in.

Pierre Veyret– Technical analyst, ActivTrades

Source: ActivTrader

 

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