Published On: Sat, Feb 27th, 2016

Option Banque Technical Analysis Report: 26-Feb-2016



Read full technical analysis report here

After Saudi Arabia and Iran, both major producers of OPEC seemed to be unwilling to freeze their production at January levels, Russia, whose economy is tumbling into recession due to the slump in energy prices, decided to raise its voice to boost last week’s deal.

On Thursday, Russia’s Energy Minister Alexander Novak reiterated that Russian monthly production this year will not surpass January’s output of 10.84 million barrels per day. He expected that the four countries including Venezuela and Qatar, can reach the historic agreement before March.

The speech from Russia supported crude last night in the U.S session, pushing both WTI and Brent oil price up more than 3% to above $ 33 and $ 35 per barrel, respectively. S&P500, the gauge of 500 U.S blue chips, rocketed by 1.1 percent to its highest level since Jan 6.

Asian equities opened higher today and major indices such as MSCI Asia Pacific Index, Topix Index, Kospi Index, etc simultaneously advanced.

Gold has surged more than 16% from the start of the year and specifically more than 10 percent this month, heading for its most impressive monthly gain since January 2012 as the sell-off in stock market pulled investors under the umbrella of safe haven assets.

At 1:30 P.M GMT, U.S Bureau of Economic Analysis will report the Preliminary GDP for Q4/2015. The broadest measure of economic activity, which is also the primary gauge of the economy’s health, is forecast to hit 0.4 percent in the second estimate, down from the 0.7 percent number released as the advance reading.

At the same time, other important data including January Core PCE – the Fed’s preferred measure of inflation and Personal Spending for the same period, is due to be published.

Late in the U.S session, Federal Reserve Governor and also FOMC voting members Lael Brainard and Jerome Powel will be speaking. An interest rate hike delay in March is strongly expected by the markets, as the CME Group Fedwatch index is only at 6.2%. Any dovish comment from Fed officials today could lower the U.S dollar against its peers.


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