OIL
This morning oil prices eased off the highs reached during the previous session but remain close to the multi-month maximum touched on Monday. The market is under the spell of optimism as the US economy looks set to avoid a contraction, and Chinese authorities continue to telegraph the intention to inject stimulus into the country’s economy. At the same time, production cuts from Saudi Arabia continue to impact the global oil supply. With demand from the world’s two largest consumers of crude set to increase and the leading global exporter cutting production, oil prices continue to find support as traders’ price-in a scenario of tighter supply and growing demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source:ActivTrader
EUROPEAN SHARES
Stock markets opened slightly lower in Europe on Tuesday as investors took some profits amid new all-time highs yesterday and a choppy trading session in Asia overnight.
Most Eurozone benchmarks pulled back, led lower by consumer cyclicals, basic materials, real estate and industrial shares as investors digested the latest batch of mixed macro data from China. In addition, stock traders in Europe also assessed the possibility of further monetary tightening in the region following the positive figures on both the inflation and the growth front, as the recession has now stopped in the Eurozone.
Furthermore, investors may be tempted to take some profits out of the market following the strong rally that led to new all-time highs on the STOXX-50, CAC-40 and DAX-40 indexes.
Today's price action is seen as normal and technical as the markets test newly established support levels ahead of another crucial batch of macro news, including PMI data from several European countries and the US later in the afternoon.
Pierre Veyret– Technical analyst, ActivTrades
Source:ActivTrader
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