Is it finally time for correction in oil and commodities? [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

Market optimism couldn’t survive to Jerome Powell’s testimony yesterday, as he said that a recession is possible, and that calling a soft landing is ‘very challenging’ under the current circumstances.

Major US indices closed the session slightly in the negative. Powell will testify today, as well, but most of the negative pricing is certainly done by now.

In commodities, the barrel of American crude extended losses below $103 yesterday, BP fell and iShares Diversified Commodity index fell below the 100-DMA for the first time this year, and deeper decline is possible, given the risks of tighter monetary policies to the global economy.

The British FTSE index, which has a high concentration of oil and mining stocks lose its advance versus its US peers.

Regarding the individual stocks, Altria lost near 10% on news that Juul’s e-cigarettes could be banned, and Alibaba gained on news that Ant Group will apply for a key financial license as soon as this month, and the People’s Bank of China could accept it.

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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