OIL
Oil prices hedged down during early Tuesday trading, carrying the momentum of the previous session and giving up some of the gains accrued in the last week. Uncertainty still lingers over a potential spillover of the conflict in Israel in a way that could involve major oil producers in the region, in a dynamic that continues to create upside risk for prices. But, at least momentarily, the market's attention has been caught by growing hopes that the US may ease sanctions on Venezuelan oil exports. Such a development would, if confirmed, provide some relief from the supply-side concerns that lately have dominated the mindset of oil traders.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: Activtrader
EUROPEAN SHARES
Equities fluctuated in Europe on Tuesday, with the recent sell-off taking a break after investors digested the diplomatic push to prevent geopolitical tensions from escalating further in the Middle East.
The wait-and-see stance continues in most markets. European benchmarks traded sideways, with good performances from utility and energy shares offset by losses in the tech and basic materials sectors. At the same time, treasury bonds, gold and silver slid slightly lower.
Market sentiment is clearly on hold after investors witnessed diplomatic efforts from the USA and Russia following US Secretary of State Blinken's visit to Israel and neighbouring Arab countries, while President Putin called for a ceasefire alongside other nations in the region to prevent the military conflict from spreading further.
While investors will wait until President Biden's visit to Israel on Wednesday to see how things are going to play out on the geopolitical front, focus is likely to be drawn back to data, with today's busy agenda including key events such as the ECB/IMF's joint conference, German ZEW data, UK jobless claims and unemployment, the US retail sales, business inventories and industrial production, alongside discussions among Fed officials.
The corporate front is also likely to keep analysts and traders busy as earnings from the US sector will continue to roll today, with reports from Goldman Sachs and Bank of America awaited by many, alongside Q3 results from health giant Johnson & Johnson.
The STOXX-50 still trades well below the 4,200.0pts mark, despite the recent rebound from the 4,125.0pts zone.
Pierre Veyret – Technical analyst, ActivTrades
Source: Activtrader
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