Oil up after OPEC-cut, but WTO spoils rally [Video]
|It has been another volatile and undecided trading session yesterday.
OPEC did cut its oil production target by 2 million barrels per day. It was the biggest cut since 2020, it was expected, it saw a morose reaction by Joe Biden - who said it was ‘shortsighted’, but a well better enthusiasm than what I expected by the oil bulls.
The barrel of US crude ended the session 1.90% higher, yet, the 50-DMA offers haven’t been cleared just yet.
The World Trade Organization gave a scary forecast for the global trade next year. The WTO raised its trade growth estimate from 3 to 3.5% for this year, but they slashed their expectation for next year to 1%, from around 3-4%. Yesterday, the investor sentiment was rather bearish. The major indices were under a decent selling pressure, following a strong two-day rally.
The data from the US was not very Fed-friendly, but it was ok. The ISM services index showed a faster than expected expansion in the US services sector, and the ADP report printed a slightly higher number than the expectations. Now all eyes are on Friday’s NFP number, and wages growth data.
In the FX, the dollar index rebounded, the EURUSD and Cable eased.
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