- European equities partially recover from recent sell-off
- First case of the new Omicron variant confirmed in the US
- US crude stocks drop less than forecast
- Oil prices lower ahead of OPEC decision
European indices finished today's session higher, attempting to recover recent losses. DAX 30 rose 2.47% at 15,506 and other major bourses added between 1.7% and 2.8%. However moods worsened in the evening, after Chancellor Merkel said, that in her opinion, the new German government should impose restrictions on the unvaccinated, similar to those in Austria and Greece. On the data front, the final Markit PMI survey for the Eurozone's manufacturing sector pointed to another month of strong expansion in the bloc's economy, while German retail sales for October disappointed.
US indices launched Wednesday's session higher however moods quickly deteriorated. During today's hearing Powell reiterated his view that inflation can no longer be viewed as a temporary phenomenon. Powell and Williams later gave signs that a faster tapering of the QE program could be expected, even despite the risks associated with Omicron. Williams also pointed out that Omicron may cause larger supply shocks which are responsible for the current high price dynamics. In the evening US health officials confirmed the country’s first case of the new Omicron strain in California, which weighed on market sentiment. On the data front, ADP report showed private businesses in the US hired 534k workers in November, compared with a downwardly revised 570k increase in October, above expectations of a 500k rise. The ISM Manufacturing PMI in the United States rose up to 61.1 in November, from 60.8 in the previous month and slightly above analysts’ expectations of 61.0. The latest reading indicated expansion in the manufacturing sector for the 18th month in a row after a contraction in April 2020, even as factories continued to struggle with pandemic-related shortages of raw materials.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOil prices moved higher during Asian and European session, however buyers were unable to keep the momentum in the afternoon. It seems that investors are probably waiting for further moves from OPEC +. The cartel opened its meeting today and the decision regarding production limits will be known tomorrow. Today's information says that OPEC + did not discuss policy changes due to large uncertainties related to the coronavirus. Nevertheless, low prices may encourage OPEC + to act faster. Additionally, data on US crude oil inventories disappointed. Crude oil stocks fell less than expected and gasoline stocks rose sharply. It is also worth mentioning that Biden announced that fuel prices will drop in the near future due to steps taken by the authorities. Mixed moods prevail on the precious metals market. Gold partially erased early gains but is still trading 0.50% higher, while sliver slumped more than 2% amid weaker dollar and lower treasury yields.
Silver price fell sharply after an unsuccessful attempt of breaking above psychological resistance at $23.00. If current sentiment prevails, the downward move may be extended to the major support at $22.00 which is marked with lower limit of the 1:1 structure and previous price reactions. Source: xStation5
The 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.
