Crude oil benchmarks have seen some steady selling throughout today’s session with Brent Oil (-2.45%) fall back to test last week’s low. Comments from the Kuwait Oil minister this afternoon regarding the OPEC cuts have done little to support the market as the levels of skepticism surrounding the organisation’s ability to effectively administer the agreed upon reduction in output rises.
Despite the fall in the oil price USDCAD (-0.22%) with the greenback failing to follow through on Friday’s gains. USDJPY (-0.75%) and EURUSD (+0.42%) both reflect this softening in the buck and whilst GBPUSD (-0.64%) has declined this is largely due to a drop in the pound. The USDTRY (+2.20%) has risen due to a sizeable drop in the Lira and we look at this currency and the credibility of the Turkish National bank in more detail here.
In the commodity space precious metal have seemingly ignored some hawkish comments from Fed member Rosengren to rise with Gold (+0.84%) rising back towards last week’s high.
Indices have been fairly subdued with the US500 (-0.17%) pulling back a little after last week’s record highs. The fall in the pound helped boost the UK100 (+0.25%) to a record high in early trade this morning but since then the market has been sideways in a relatively narrow range. There’s some moderate weakness evident in the DE30 (-0.46%) and EU50 (-0.50%) as mainland Europe sees it’s stock markets begin the week in the red.
Looking ahead there’s Australian retail sales figures overnight at 00:30 before Chinese inflation figures an hour later. Tomorrow is pretty sparse on the data front in Europe with Canadian building permits at 13:30 the next release of note. US JOLTS openings at 15:00 rounds off the day.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.