Market Sentiment Webinar: Surging Crude Oil Price Hits Stocks Ahead of NFPs

Market sentiment analysis:

• Trader confidence has been hit by the surge in the crude oil price and other commodity prices that has raised fears of slower global growth and higher inflation.
• In addition, the slide in the Facebook stock price has added to the downward pressure on US stock prices generally.

Trader confidence weak but signs of recovery

Trader confidence looks to be returning only slowly after being hit by rising crude oil and other commodity prices, moves that have raised fears that the recovery in global growth could run out of steam and that inflation could climb strongly.

So while stock prices have suffered, safe-haven buying has boosted the US Dollar.

US Crude Oil Price Chart, Monthly Timeframe (November 2012 – October 5, 2021)

Chart by IG (You can click on it for a larger image)

Elsewhere, sharp market moves are unlikely ahead of the monthly US non-farm payrolls data due at the end of the week.

In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it.

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex