• Saudi Arabia calls for emergency OPEC+ meeting
• Major indices rebound on oil price rally
• Oil prices surged after President Trumps Tweet
• 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:xStation5
