The Big Picture:
The Dax traded up on Thursday, gaining 0.62%. WTI Oil has gained more 8% this week, this being the largest up move since March of this year. The total rise for this month has been over 20%, after dropping below 40% at the beginning of August. A major reason for this up move being talks on capping oil production, held between Alexander Novak, the Russian Minister for Energy and the Saudi Oil Minister, Khalid Al-Falih. These talks are in response to the fact that Saudi Arabia, Iran and Russia are all producing Oil at maximum capacity. Saudi Arabia exported 8.83 Million barrels of oil and refined oil products in July, this being highest monthly Saudi production rate in total.
Supporting Oil additionally, was the news that US Oil and Petroleum Inventories had surprisingly dropped. Interestingly, Hedge Funds have been selling their long positions in to this rally, they were not behind this fulminant rally. The next OPEC meeting will be crucial, as it will offer an insight in to how much expectation is priced in at current levels.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading down 0.02%
The DAX is in an upward trend. Next resistance is seen at 10860, support at the breakout level of 10500. We expect a continuation of the upwards trend.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429. Short term, the Euro is trading an upwards trend, within the total sideways move.
JPY / USD
The USD is in the process of forming a quadruple bottom.. Biggest support, on a closing basis, will be found at 100.31.
Mid term, Gold is trending upwards, short term we are seeing a sideways move. The next major resistance is at 1375, support at 1300. Gold is forming a rising triangle.
Oil is trending upwards. We expect a continuation of this trend.
The S&P 500 gained 0.22% on Thursday, being supported by higher Oil prices. US economic data came in as expected. Cisco lost ground after announcing weaker quarterly earnings. The worlds largest retailer Wal-Mart, reached a new yearly high, after announcing better than expected numbers, gaining 1.88%. Asian Markets in general are trading weaker this morning, whilst the Nikkei 225 is up 0.37%, on the back of the USD rising 0.44% to the Yen. The USD is also trading up against the Euro. Gold is down 0.34% whilst Oil rises 0.87%
Today´s numbers (CET)
No relevant data expected
Company news :
USA: Quarterly Earnings: Deere & Co, amongst others.
RoboForex Analytical Department
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