Crude rally slows, but Mid-East risks prevail [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The reaction rally in oil is easing, with the barrel of crude settling around $86pb this morning. Brent crude remains offered near the 50-DMA, near $88pb level. Upside risks prevail.

Safe haven assets and oil companies amassed important capital inflows on Monday. Exxon Mobil jumped 3.5% and rally in oil stocks helped the British FTSE 100 limit gains in an otherwise depressive European trading session. Gold hit $1860 per ounce, as the US 10-year yield fell by a big chunk, around 18bp, on the back of increased inflows into the ten-year papers. The 2-year yield slipped below the 5% mark on dovish Federal Reserve (Fed) comments. The S&P500 – which opened the week on a bearish note, rapidly recovered losses and closed the session 0.63% higher. Nasdaq advanced above the 100-DMA, but the European Stoxx 600 started the week on a bearish note.

In currencies, the US dollar gave back early gains, the EURUSD stabilized between 1.0560 and 1.0580 while the USDJPY eased to 148. More Fed members will be speaking today, the IMF will soon release its latest growth forecasts and investors will remain cautious before the release of the latest PPI and CPI figures due Wednesday and Thursday respectively.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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