Crude Oil Picks Up, Euro Nears Important Support, Equities Remain Bouyant - US Market Open
- Crude oil off its low on chatter that OPEC+ will cut production.
- EUR/USD trades either side of 1.1000 after worrying German data.
- Equity markets remain biased to the upside.
Crude Oil Boosted by OPEC+ Talk, Trade Hopes
US crude oil is battling back after hitting a one-year low this week on a combination of OPEC+ talk and Chinese tariff news. OPEC+ is mooting production cuts of 600k barrels a day in order to balance out lost demand caused by the Chinese flu outbreak. In addition, overnight news that China would halve a range of tariffs on US goods to the tune of $75 billion gave risk markets a nudge higher, although the positive sentiment remains muted for now.
EUR/USD Falls After Data Shows Slumping German Factory Orders
Another set of weak data, this time German factory orders, added further downside pressure on EUR/USD, pushing it close to an important support level. The Euro, already under the pump after Wednesday’s much weaker-than-expected euro-zone retail sales release, is trading wither side of 1.1000 against a strong US dollar and any upside beat in Friday’s US Labor Report (NFPs) may see stubborn support finally crack.
European Stock Markets – Positive Sentiment Remains in Place
Record highs in the Nasdaq and the S&P 500 helped push European equity markets higher in morning trade, with the DAX up for the fifth straight day, while the CAC 40 rose after Societe Generale announced it is thinking of a share buyback after positive quarterly results.
Daily DAX Price Chart (June 2019 – February 6, 2020)
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