Spreadex Market Update
Saudis win OPEC battle royale as Draghi reaffirms eventual intervention
Since this morning, oil is down 4.4% to a low of $74.35. Saudi Arabia managed to override the pleas of smaller members of the cartel, allowing the country to maintain their position in the oil landscape as the USA continues to ramp up production. Oil was looking to today’s summit as its best chance to prevent the commodity from tumbling any lower; with this opportunity gone, oil looks at a loss for another chance to end its drop in the short term. Whilst the US markets will only be open for limited trading hours tomorrow, it will be interesting to see the impact of OPEC non-decision on the Dow’s record run.
As oil continued to sink lower as the day progressed, the FTSE maintained its weak performance as the weight of the index’s multiple energy companies bearing the brunt of oil’s misfortune. Afren, Petrofac, Premier Oil, Tullow Oil and Royal Dutch Shell were all down today by at least 4%; in the face of this mass of bearish sentiment, the FTSE didn’t stand a chance at rallying as the day went on, falling 0.2% to around 6713.
As has been the trend recently, the DAX has soared as the euro cowered following ECB President Draghi’s reaffirmation that without economic reform the Eurozone is at risk. Whilst Draghi would not provide any firm comments before the ECB meeting next Tuesday, his continued confirmation of ECB’s intention to intervene at some point in the (relatively) near future has been music to the ears of the German index.
The DAX rose 0.5% today to reach an intraday high of 9995.7, a hair’s breadth away from the 10000 mark it hasn’t reached since July this year. The euro, on the other hand, continued to be wary of Draghi’s comments, as the promise of QE is also a promise of potential currency decline, causing the euro to fall 0.2% against the euro to 1.24808. It will be interesting to see if the DAX can maintain its run as the Eurozone announces its CPI flash estimate and unemployment rate tomorrow morning.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
