On Wednesday, US markets opened in the green, futures for US indices showed a positive trend throughout the European trading session. Right from the start, the indices showed a strong gain, the main indices grew by half a percent, while the high-tech NASDAQ showed an increase by a percent. Of course, it should be noted that yesterday the markets were trading under heavy pressure, as high-tech NASDAQ was in vanguard of the decline. Today, oversold high-tech stocks rebound from yesterday's lows and are regain some ground, dragging indices higher.
Today is the last full trading day in the global markets this week, tomorrow US markets will be closed due to the Thanksgiving Day. Friday will be a short day for US markets. We can expect an increase in volatility in today's US trading session, given a large bunch of US data. First, it is necessary to note the October durable goods in the American economy. Quite unexpectedly, the data showed the decrease, the numbers came out frankly weak, -4.4%, with expectations of -2.6%. The numbers for weekly jobless claims also unexpectedly exceeded expectations. Over the past week, the Americans filed 224K applications with expectations of 215K. Later in the focus of the markets will be data on the real estate market (home sales in the secondary market), Michigan sentiment, and official data on oil reserves.
On the FOREX currency market, US dollar is demonstrating a mixed trading session, being under weak pressure after yesterday’s rapid recovery. USD dollar index rested on the resistance of 96.75 points, and adjusted below. We expect the dollar index to remain in the range of 96-96.80 over the coming week.
The rest of the FX market could not take advantage of the local weakness of the US currency. It should be noted that today the currency markets traded with restraint, remaining within yesterday's ranges. European currency marked the session highs in the 1.1425 zone, but could not move higher.
Brent is trying to recover from the price collapse. Yesterday, the decline in the moment exceeded 6.5% and the minimums of the year were updated.
The main concerns are still associated with the lack of a clear OPEC plan amid growing threats of excess supply in the market. Trump said yesterday that the United States would not impose sanctions on Saudi Arabia for the murder of a journalist, noting that Riyadh is a reliable ally and partner of the United States.
The head of the IEA also made statements, saying that the oil market is now entering a phase of high uncertainty, which is caused by a complex situation in the global economy and geopolitical risks. According to the head of the IEA, for many market players, the cancellation of US sanctions against some consumers of Iranian oil was a serious surprise.
The oil bears was supported by situation in global stock markets, which was highly negative.
Today, the oil market is gradually recovering after the data from the API and technical factors. Today official US inventories data may locally provide strong support to the oil market, but globally the situation for oil remains very complex and uncertain.
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