OIL
Oil prices fluctuated during early Monday trading as the markets considered the potential impact of the weekend’s putsch in Russia. The price of the barrel of Brent climbed as the market opened, with traders pricing in the possible repercussions of further political instability in Russia. Despite the apparent resolution of the short-lived insurrection, many question marks remain, with the potential for further trouble, which could disrupt Russian oil supply. However, such concerns weren’t enough to support prices for long. As the European trading session got underway, crude prices entered the red. The bigger picture, which includes assertive monetary tightening by Western central banks and a subdued economic recovery in China, continues to generate apprehension over future demand, capping the upside created by the disturbances in Russia.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stock markets slid lower in Europe at the beginning of the week as investors digested the latest geopolitical events from Russia ahead of a quiet day on the data front.
Financial and industrial shares led losses sending benchmarks back to their last support levels on Monday, in an initial reaction to the geopolitical tensions between Vladimir Putin and the Wagner group over the weekend.
However, this price action is seen to be short-lived, despite lingering market volatility, as an agreement between the Russian government and the military group took place shortly after the beginning of operations on Saturday.
Elsewhere, investors are still digesting the latest monetary developments after Fed Chairman Powell dented market sentiment towards riskier assets at the end of last week, confirming another 1 or 2 rate hikes were on their way before year-end.
Today’s session will likely remain calmer than usual due to the lack of significant macro data. At the same time, investors will brace for tomorrow’s ECB President Christine Lagarde’s speech in Portugal and the New Home Sales report from the US.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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