OIL
Brent oil prices are trading flat as the European session gets underway but appear poised to close the week in the green for the first time since early July. The price per barrel has benefited from rising geopolitical tensions in the Middle East, which have fuelled fears of a potential conflict that could disrupt the region’s output and reduce the global supply of crude. Additionally, trader sentiment was bolstered by better-than-expected US job figures released on Thursday, which eased fears of a recession in the world’s largest economy, thereby improving the demand outlook. This positive momentum was further reinforced by Chinese inflation numbers that exceeded expectations. In this context, it wouldn’t be surprising to see the price per barrel testing the $80 level.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Markets edged slightly higher in Europe, extending their rebound at the beginning of the week's last trading session despite lingering recession worries. The technical bullish correction continues on riskier assets, and most EU indices now trade close to crucial short-term resistances as we get closer to the end of a turbulent week.
Although this morning's German CPI data came out as expected, traders are already looking forward to the next batch of crucial data due next week, including the US consumer inflation and retail sales figures. We expect market volatility to remain high due to the current lack of liquidity across a wide range of assets, as investors still struggle to digest the global economic uncertainty, especially following the latest slew of mixed narratives from Fed officials.
Today's session will likely remain "technical" rather than fundamentally driven, and any directional price action remains unlikely for the end of the week. The STOXX-50 index, carried by financial and energy shares, currently flirts with the 4,685pts level, a significant resistance before the crucial 4,780pts zone.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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