Yesterday`s session brought another fall on the stock exchange, where the main stock indices ended the day with a loss. One of the most interesting markets was again oil, which managed to recover from a significant portion of previous losses.
S&P 500, Nasdaq 100 or Dow Jones fell yesterday to the levels we observed in the first quarter of this year. The first two indexes were down to levels in March and Dow Jones to levels from February. The declines were to be a consequence of the escalation of the trade conflict between the United States and China. Today in the morning we see an attempt to rebound on futures. Yesterday's increase in risk aversion brought yields of US 10-year bonds to the level of 2.21%, the lowest since September 2017, to end the day with a rebound to 2.26%.
The most interesting market seems to be the oil market, which fell sharply yesterday to end the day with a solid rebound. This was associated first with increased concerns about global economic growth, which was associated with a fall in oil prices, while the return of bulls occurred after the release of inventory data in the United States. According to API data, US crude oil inventories fell more than 5 million barrels last week. As a consequence, we observed a return from 57 USD to 59 USD, and a candlestick hammer pattern was created on the daily chart.
In anticipation of today's revision of US GDP data for the first quarter, which will be released at 2:30 PM, the US dollar slightly loses in the morning against main currencies, with the exception of the Japanese yen and the Swiss franc. Meanwhile, at 5:00 PM next important data for the crude oil market will appear regarding changes in crude oil and gasoline inventories.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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