Oil Price Volatility Persists
|USOil, H1 & Daily
USOil prices are up 2.2% at $48.00, earlier printing a 17-day high at $48.30. This is the third consecutive day of gains, and comes amid a recovery in global stock markets and associated revival in risk appetite.
Expectations for a strong December jobs report out of the US today, which juxtaposes expectations for neutral Fed policy before an ultimate rate cut at the 18-months horizon, have lifted spirits.
There is additionally a degree of optimism about the US-China trade talks slated for January 7-8 in Beijing as increasing signs of real-world impact of the trade spat raises the incentives on both sides for compromise. China also pledged to step up “countercyclical adjustments” of macro policies.
S&P 500 futures have rebounded by 1.5% after the cash version of the index closed yesterday 2.5% for the worse. Japan’s Nikkei 225 still closed 2.6% down in catch up trade as Tokyo markets reopened after a protracted break, while China, along with other Asian and European bourses have rallied. USOil prices are now up by 6.0% in a week, but are still down by 9% from last month and have remained stubbornly below the key 20-day moving average for 60 trading days. The RSI, MACD and Stochastic are all showing tentative positive signs. The psychological $50.00 remains key.
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