OIL
Oil prices stabilized during early Friday trading, halting the losses of the previous session when Brent crude prices fell almost 3%. The recent strengthening of the US dollar contributed to the weakness in the price of the barrel, which is denominated in the American currency. Future demand expectations are also a concern, with China, in particular, coming under the spotlight due to downgraded economic growth prospects. Against this background, remarks by the Russian deputy prime minister, contradicting those of senior Saudi officials, who had hinted at a potential cut in production by OPEC+, created further downside for the price of the barrel. Under pressure from both supply and demand sides, there may be further downside in the run-up to the end of the week.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Equity markets edged slightly higher at the beginning of the last trading session of a volatile week for traders.
Market sentiment strengthened moderately following this week’s sell-off on stocks, as progress is finally being registered towards the US debt-ceiling issue after US negotiators are said to be moving closer to a deal.
While this development gave traders the perfect opportunity to cover their short positions or increase their exposure to discounted shares, we expect market volatility to keep rising as long as no debt deal is fully confirmed.
The STOXX-50 isn’t registering a sharp bullish trend reversal so far, as losses in financials and utility shares are counterbalancing gains in healthcare and basic materials.
The index now trades above the 4,250.0pts support but below its first resistance zone between 4,285.0pts and 4,300.0pts, and as long as this zone remains unbroken, the very short-term bearish trend will likely continue.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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