OIL
Brent oil prices fell in early Thursday trading following the release of weaker-than-expected US economic data. Non-manufacturing PMI numbers came in lower than estimations, indicating a slight decrease in activity, with ADP employment data also disappointing. Oil traders interpreted the disappointing figures as a sign of economic slowdown, likely to translate into lower demand for oil. However, despite today’s losses, the downside for the price per barrel remains limited. Geopolitical tensions in the Middle East and disruptions caused by weather events on the US East Coast remain bullish factors, threatening supply and counterbalancing any medium-to-long-term demand concerns.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Equity markets held gains in Europe on Thursday, with lower volumes than usual, as investors hold their breath ahead of significant macro developments for the end of the week. Traders and analysts have a lot on their plate for the end of the week.
Between a general election in the UK, key job reports from the US, and the second round of the French legislative elections, the situation may be difficult for many to assess. The STOXX-50 trades slightly below the 5,000pts level, supported by consumer cyclical and financial shares, while UK shares are also trading higher as the nation enters its voting day.
It seems the politically uncertain situation in Europe has been more or less offset by the prospect of lower borrowing costs in the US, highlighting the importance of monetary policies in investors’ risk allocation. Volatility should remain high, providing very short-term opportunities for traders and turbulences for longer-term investors today and tomorrow. However, we expect markets to become much more directional once these key political and economic events are digested, providing investors with a clearer outlook.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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