OIL
Brent oil prices edged down in early Friday trading but are still hovering above the $85 level, poised to close the week with a gain of more than 3%. This marks the second consecutive week of gains for the price per barrel, as supply and demand pressures combine to support prices. With the prospect of an all-out war between Israel and Hezbollah increasing, the entire region could soon be drawn into a conflict that has the potential to disrupt one of the globe’s main production areas. At the same time, demand is showing signs of recovery, as highlighted by the release of the latest EIA data, which revealed a drawdown in US crude stockpiles that exceeded expectations. Against this background, it is not surprising to see oil prices continuing to recover.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European markets were little changed on Friday, holding yesterday’s gains as investors brace for today’s triple witching session. The STOXX-50 index trades well above the 4,900pts level following the sharp bullish price action registered this week since the rebound over 4,815pts. Most sectors are on track to register their best weekly performance in months as investors drove prices higher in a rebound move, correcting last week’s sell-off sparked by political uncertainty in the region.
However, the situation remains highly uncertain in France, where far-right candidates for the looming legislative elections are leading an aggressive campaign, which tells us that we are not out of the woods yet. This week’s higher appetite for risk is seen as technical - with investors buying back short positions - rather than fundamentally driven. With that in mind, we expect market volatility to remain high through the end of June, when investors will finally get more clarity about the political outlook in the EU’s second economy.
Today’s session will likely be rhythmed by significant market volatility, as investors will face a triple-watching session where many options and forward contracts will expire, causing short-term havoc across many asset classes.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.