• Major indices rebound on oil price rally
• Oil prices surged after President Trumps Tweet
Stock markets in Europe managed to partially recover at the end of a volatile session as investors welcomed news that an OPEC+ emergency meeting had been scheduled in order to stabilize the oil market. Earlierer President Trump tweeted he expect Saudis and Russia to reduce oil production by at least 10 million barrels and possibly up to 15 million barrels per day. However it is uncertain whether the agreement can be reached even with the full cooperation of OPEC+. Today DAX closed 0.3% higher, CAC 40 climbed 0.3% and FTSE rose 0.5%.
Higher oil prices helped US stocks extended gains on Thursday despite devastating jobless claims report, which showed a record jump in number of unemployed people namely 6.648 million, well above expectations of 3.5 million. The Challenger report for March also showed disappointing data as US companies cut 222.28 thousand jobs the most since January of 2009. Recent macroeconomic data suggest the coronavirus pandemic will have greater impact on the global economy than earlier anticipated. During today trading session Dow Jones is up 2%, S&P went up 1.85 % and Nasdaq is trading 1.38% higher.
Despite risk appetite towards equity markets, gold and silver are also trading in green on Thursday as some investors believe that because of the ongoing pandemic interest rates will remain on low or negative level for an extended period of time. Gold went up over 2.0% and silver is trading 4.15 % higher.
US Non- farm payrolls will be the main macroeconomic release scheduled to be announced on Friday together with unemployment rate. The data will probably show a record rise in unemployment. In the morning Markit PMI readings from several countries from the Euro zone will be published. Later investors will also get to know USD ISM Non-Manufacturing and Non-Manufacturing Employment Index.
Brent Oil spiked today after Saudi Arabia called for an OPEC+ meeting and President’s Trump Tweet regarding reduction oil supply by 10-15 million barrels per day. The oil price quickly returned to the consolidation zone between $ 24.41 and $ 31.17 per barrel and currently is trading near the upper limit of the range. If the price manages to close above the $ 31.17 resistance level, further upside move remains likely. 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.
