OIL
Brent oil prices bounced back from the multi-month low touched on Wednesday, hedging just over the $80 per barrel level in early morning trading. Crude prices suffered this week, dropping more than 5% on future demand concerns, as well as lowered perceived supply risks from the Israel and Gaza situation. Inflation data from China, the world’s top oil importer, revealed a disinflationary trend that could be the precursor to a slowdown in economic activity that may lead to reduced energy consumption. At the same time, US crude inventories are growing, reaching the highest level since February. Completing the bearish scenario for crude is the growing sentiment amongst traders that the conflict in Gaza is unlikely to escalate and disrupt the global oil supply.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stocks traded higher in Europe on Thursday, extending yesterday's gains as investors' appetite for risk resurges.
The bearish correction that started this week ended on Wednesday, and bull traders are continuing to pile up their exposure in both treasuries and equities as optimism about a peak in monetary tightening remains alive.
Without any significant clues provided by the recent speeches from Fed and ECB officials, the dovish narrative that started with last week's data and FOMC meeting seems to prevail in investors' minds.
The STOXX-50 index registered a sharp rebound from the 4,131.0pts zone and currently challenges the 4,200.0pts level, led higher by utilities and industrial shares. In contrast, energy stocks registered the worst performances so far due to the drop in oil prices.
Today's focus will likely remain on central banks with another batch of speeches, including ECB President Lagarde and Fed Chairman Powell, while the US initial jobless claims looms in the afternoon.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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