• US equities erase most of the early gains
• Oil price drops after EIA report
US indices erased early gains and are trading slightly lower as investors are still waiting for concrete decisions on the coronavirus stimulus package. House Speaker Pelosi and Treasury Secretary Mnuchin will speak again today following the expiration of the 48-hour deadline set by Democrats. Pelosi remains positive that a comprehensive stimulus agreement might be reached later this week, while White House economic adviser Larry Kudlow said it was a "sunny, optimistic morning" in terms of negotiations. Also Fed's Brainard called for more fiscal support amid ‘uneven’ recovery. Meanwhile, number of new coronavirus infections surpassed 60K on Tuesday. On the corporate front, earnings from Abbott and Verizon beat forecasts while results for Netflix disappointed. Shares of Nikola Corp rose nearly 10% on Wednesday after a General Motors executive told CNBC that he still sees a partnership with the electric-vehicle start-up being a great opportunity. Snap Inc stock soared 34.1% on upbeat quarterly results, as more people signed up to chat with friends and family during the COVID-19 pandemic. Stocks of social media giants Facebook Inc and Twitter Inc rose 4.6% and 6.6% respectively, while Pinterest stock jumped 10.3%.
U.S. crude futures dropped over 4% higher, while the international benchmark Brent contract fell over 3.6% after latest data from the EIA showed US crude oil stockpiles fell by 1.001 million barrels, slightly less than analysts’ estimates of a 1.021 million barrels. At the same time, Baker Hughes said that the demand recovery is beginning to level off and significant excess capacity remains, which could create volatility in the future.Elsewhere, gold futures rose 0.9% to $1,925/oz, while silver is trading 1.8% higher at $25.09/oz.
Gold is testing major resistance at $1920 /oz which is additionally strengthened by 50 SMA (green line) and upper limit of the triangle formation. If buyers manage to break above it, an upward impulse towards $1980.00 could be launched. On the other hand, once sellers regain control, the support at $1865.70 may be at risk. Source: xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
