Jump in to know the key market events and trading ideas for this week!
Market movers on June 8
Oil prices surged after successful OPEC+ meeting
OPEC+ members have signed a significant deal to cut the oil supply by 9.6 million barrels a day next month. In addition, any country that failed to fully implement output cuts should compensate it during next months. Also, keep in mind that countries a reopening and demand is recovering. That all played well for oil prices: WTI oil opened today at $40 a barrel and Brent oil – at $43. It’s the highest level for over three months! Here below you can see how U.S. Energy Secretary Dan Brouillette welcomed the deal on Saturday.
Let’s look at the Brent oil chart. It’s headed towards 50% Fibonacci retracement level at $45. And, this price is likely to be reached soon. The next retracement level will be at $51.5. Support levels are $39 and $36.
S&P 500 is aggressively climbing up
First of all, look at the chart. You’ll see really great performance of S&P 500. The price has passed $3190. If it crosses the retracement level at $3250, it will clear the way up towards $3335. Support levels are 3110 and 3000. What is the reason of such a fast growth? The reason should be the optimistic market sentiment as economies are reopening.
Gold is recovering its losses
The recent drop of the shining metal seems to be in the process of restoration: XAU/USD is one step away from testing $1,700. Noting the cloudy status of the US-China relations, we are likely to see that cross upwards pretty soon.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!