OIL
Brent oil prices remained stable during early Tuesday trading, hovering close to a three-week maximum reached by the end of the previous week. The mood in the markets is changing after a prolonged period in which demand-side concerns appeared large on traders' radars and capped the upside for the price of the barrel. Notably, economic activity has seen an uptick in China during the Chinese New Year period, instilling optimism for heightened future demand, a sentiment further bolstered by the unveiling of fresh incentives to revitalise the nation's beleaguered housing market. Against this backdrop, attention is once again drawn towards potential supply disruptions as the Houthis in Yemen persist in their threats to the Suez route, evidenced by a recent spate of attacks on ships over the weekend. With concerns regarding demand gradually waning and geopolitical tensions persisting, there is potential for further escalations in oil prices on the horizon.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Equities edged higher in Europe on Tuesday, with market sentiment strengthening over positive developments in Asia while waiting for key macro data later this week.
China provided a fresh boost to risk appetite overnight after the PBoC announced cuts in its 1- and 5-year loan prime rates, another step to the nation's economic stimulus policy.
This news helped to prevent European benchmarks from correcting further, and gave investors reasons to buy the dip while waiting for other crucial macro developments, such as corporate results, the minutes of the last Fed meeting and the EU CPI report.
The STOXX-50 index successfully rebounded from the 4,745.0pts zone and is currently trading over 4,760.0pts, mainly supported by basic material, with Air Liquide jumping 6% following the publication of strong results for 2023.
The next target for the index remains the top of its current range at 4,774.0pts, where a breakout could pave the way for higher tops around 4,791.0pts, 4,807.0pts and even 4,822.0pts by extension.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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