OIL
Brent oil prices surged to a four-month high in early Monday trading, marking nearly a 1% increase. Traders' concerns about supply have intensified, propelling March gains to almost 5%. Ongoing tensions in the Middle East persist as a significant worry, with potential escalations threatening to disrupt crude supply from the Gulf and crucial shipping routes. Supply anxieties were exacerbated over the weekend following additional attacks on Russian refineries, resulting in an estimated 7% reduction in the country's output. Conversely, demand forecasts have been upwardly revised, bolstered by expectations of lower US interest rates in the first half of the year and a global economic upturn. The International Energy Agency now anticipates a supply deficit in 2024. Given this backdrop, the barrel's price is poised to maintain support, with this week's Fed meeting taking centre stage. Any indication of a potential rate cut within the first half of the year could further drive prices upward.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European indices traded sideways on Monday as investors brace for a batch of rate decisions this week.
Since the opening bell, the STOXX-50 index pulled back below the 5,000.0pts level, paring gains registered on pre-market trading, as poor performances from healthcare stocks offset gains in tech shares.
The rally on equities has slowed since last Thursday, which is no surprise considering the slew of major economic developments investors are awaiting this week.
Rate decisions from Australia, Japan, Indonesia, Taiwan, Switzerland, Norway, and the UK are expected this week, but there will be a particular focus on the next FOMC meeting.
Indeed, investors will see if Fed chairman Jerome Powell reiterates the dovish tone he recently provided and will try to assess the pace and strength of the Fed's next monetary moves, which are likely to shape market sentiment for the few weeks to come on riskier assets.
Elsewhere, EU stock investors will pay close attention to today's CPI report from the Eurozone (expected to show declining price pressure) before a speech from ECB president Christine Lagarde on Wednesday and the EU summit in Brussels the next day.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.