The bear market stays
Even though the session’s start on Monday was optimistic, the buyers’ activity is still fairly weak. Moreover, the trend is still bearish and it hasn’t gathered enough grounds to change just yet. Here we speak not only of fundamental factors, but also about technical analysis. Key European indices are traded in the red zone; though seller activity is reducing due to the greenback becoming moderately weaker and consequently, the interest towards rice is growing. Bulls’ inability to develop a substantial correction shows their weakness and elevates the risk of key European indices becoming weaker too.
Last trading session leader and outsiders:
DAX:
Top: RWE AG St +1.11%, Sartorius AG Vz +0.81%, BASF SE +0.8%
Flop: Deutsche Bank AG -4.36%, PUMA SE -4.21%, Porsche Automobil Holding SE -4.16%
EURO STOXX 50:
Top: Enel S.p.A. +2.15%, Total S.A. +1.93%, BASF SE +1.52%
Flop: LVMH S.A. -2.52%, AXA S.A. -2.46%, Siemens AG -2.42
Dow Jones (us 30):
Top: Chevron Corp. +1.19%
Flop: Apple Inc. -4.25%, Boeing Co.-3.42%, salesforce.com Inc. -3.3%
As you can see the outsiders have significant losses compared to the leaders’ profits. Meanwhile Dow Jones (us 30) has only a single company that is being traded in profit. All of that reflects the overall market mood.
Bond market:
We do not see any straightforward growth on the Europe’s bond market, but also can’t suppose the mood would change. European 10 year yields are a bit lower than the previously achieved maximums. Either way, there’s no sustainable profitability decrease pattern. With that the next wave of the euro weakening and the greenback strengthening will push the rates further.
Oil market expecting the OPEC+ meeting:
An emergency meeting of the majority of OPEC+ members is held this Wednesday in Vienna. This meeting is such an emergency, not all the members will be able to attend it. The last Cartel meeting was organized online and the following meetings were supposed to stay like that till the end of the current year. A fall in the oil quotes made the OPEC+ members to act fast. The meeting will conclude to reduce the volume of petroleum extraction and the question is how much it is going to be cut.
WTI tested below $83/barrel in the first half of the European session; meanwhile Brent did not manage to hold its $89 level. Nonetheless, there’s still a chance of a short term rise in the oil related quotes. The key bull factor – oil extraction reduction carried out by OPEC+.
