Wall Street down for a second day. Oil rebounds.
US markets extended the post-FOMC decline on Friday as US producer prices rose more than forecast in October, affirming the Fed’s hawkish stance on rates. At the weekend, OPEC ministers talked about a plan to reduce oil supplies going in to 2019, which has given crude oil a lift in early trading today.
US30USD Daily Chart
The US30 index fell for a second day Friday, retreating further from four-week highs
The index tested the 55-day moving average at 25,886, but this average held on the day. Markets have opened slightly in the black this morning
It’s a US holiday today commemorating Veterans Day, so activity, volumes and liquidity may be less than normal.
DE30EUR Weekly Chart
The Germany30 index recouped early losses to close in positive territory Friday. A more positive outlook for Brexit negotiations helped sentiment. Talk that UK PM May could hold Cabinet meeting today or tomorrow to approve Brexit deal after talks with Ministers yesterday
The index is still hovering above the 200-week moving average at 11,499
Italy Deputy PM Di Maio says confident of 2019 budget deficit/GDP ratio of 2.4%, based on growth and spending cuts. EU’s Dombrovskis says their budget based on overly optimistic assumptions.
WTICOUSD Daily Chart
WTI could advance for the first time in eleven days after weekend OPEC developments
On Friday, WTI dropped below the $60 mark for the first time since February 14
The OPEC meeting at the weekend saw members and allies making plans to reduce production in 2019, in an attempt to halt sliding oil prices. Saudi Arabia to cut production by 500,000 barrels per day in December.
