OIL
Oil prices rose during early Thursday trading, changing the tune from the previous few sessions, during which Brent crude prices fell almost 8 percent. The price gains result from a return of optimism to the markets, following the passing of the US debt ceiling bill through Congress. With the prospect of an American default now looking very unlikely, there was a collective sigh of relief in the markets, which resulted in greater risk appetite and also offered support to oil prices. However, any gains were capped by lingering concerns over demand from China. Manufacturing activity in the world’s largest oil importer decreased during the month of May, reinforcing expectations of an economic slowdown in the country and hindering oil demand prospects.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stocks rebounded almost everywhere on Thursday as appetite for risk resurges following positive macro developments from the US.
Investors cheered the progress made around the US debt-limit issue after the agreement reached earlier this week passed the House of Representatives and is now heading to the Senate, just a few days before the deadline. Meanwhile, market sentiment has also been supported by the latest publication of the Fed’s Beige book which seemed to confirm a tightening “pause” could be registered during this month’s FOMC meeting.
Traders’ focus will now switch towards the US employment sector, with today’s ADP Non-Farm Employment Change alongside the initial jobless claims release, while the ISM Manufacturing PMI should also bring more volatility in the afternoon.
The STOXX-50 is trading 1% higher, with almost all sectors in the green, with financial and energy shares the top movers today.
However, the market’s failure to clear the 4,250.0pts resistance could drive prices further down towards 4,200.0pts, which would validate an AB=CD reversal harmonic pattern, already signalled by the bullish divergence with the RSI.
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.