The Big Picture
OPEC has reacted to the price fall on oil. A decision to cap oil production was made by energy ministers at the Algiers meeting. The prerequisite for this decision was that Sunni Saudi Arabia moved closer to Shiite Iran. Saudi Arabia and Iran have been in an ideological war for many years, making agreements almost impossible to reach. The economic necessities for these countries is now stronger than religious doctrine. There is now talk of this agreement being historical. Exact production numbers will be given at the November OPEC meeting in Vienna.At the moment the production rate stands at 33.2 million barrels, this could be reduced by 750 000. Commodity markets were surprised by this agreement. WTI Oil rose 5.33% to 47,05USD.
The DAX is in a sideways trend. Resistance is at 10820, support at 10250
Euro / USD
The Euro is in a large sideways trend against the Dollar. Support is at 1.0822, resistance at 1.1429.
USD / JPY
The USD is in a downward trend against the Yen. Strong support is seen at a closing level of 100.
Gold is in a sideways trend. Strongest resistance is seen at 1375 USD and support at 1300 USD
WTI Oil is trending sideways
The DAX recovered well from its three day losing streak, rising 0.74%. After initial strength, profits were partially reduced in to the close. Best performer was Linde, gaining 3.88%. The S&P 500 index gained 0.53%, positive influence being given by the OPEC agreement on oil production caps. Oil exploration and energy stocks gained the most from the firm oil price, e.g. Murphy Oil gained 11.28%. Nike lost 3.78% after announcing their quarterly numbers. Oil prices also supported Asian markets, the Nikkei 225 gained 1.54%. The USD gains 0.72% to the Yen and weakens against the Euro. Gold and WTI Oil are unchanged.
RoboForex Analytical Department
USA: PepsiCo amongst others
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