Global Stocks Steady as Rout on Markets Eases

12.02.2018 / 11:59

Rating:

Oil prices snap losing streak

Oil prices have arrested their slide this morning after slumping last week on fears that higher prices have opened the door to shale drillers in the US.

Brent crude suffered its worst week in over two years, plunging 8.4pc to below $63 per barrel, after fresh industry figures indicated a pick-up in drilling in the US.

Oil prices have climbed above $70 per barrel for the first time since 2014 this year but signs that oil cartel OPEC's efforts to rebalance the market will be offset by rising production in the US sent prices spiralling again last week.

Oil is clawing back lost ground this morning, moving 1.9pc higher to above $64 per barrel.

Stocks rebound but Government bond yields continue to tick higher

Normal service resumed?

Stocks are back on the rise this morning as the ship steadies on markets but Government bond yields are ticking higher on continued investor jitters over inflation.

The US 10-year Treasury yield now has the 3pc barrier in its sights after pushing up to 2.889pc, its highest level since 2014.

Those inflation fears could be exacerbated by CPI figures due in the US and UK in the coming days but economists forecast prices to have cooled in both countries in January.

Traders that have "bought the dip" were quickly punished last week but "the current rally is a stock-pickers paradise, with the opportunity to pick up potential bargains.

The key event of the week is US Consumer Price data on Wednesday, with investors anxious to determine whether the inflation fears that have helped to drive recent market moves have been overdone or if these concerns are justified.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

Varchev Traders

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Global Stocks Steady as Rout on Markets Eases

London

Universal numbers