(11 September 2020)DAILY MARKET BRIEF 2:Oil Prices Continue Bearish Trend
In individual corporate news, Oracle stock price increased by 6% in after-hours trading after the software maker reported Q1 earnings and revenue that beat analysts’ forecasts.
In the commodity market, oil extended losses as investors are worried about the unexpected increase in the US crude supply and ongoing weak demand caused by the lockdown measures.
WTI is down 0.08%, and Brent has declined by 0.27% to $37.25 and $39.92, respectively.
The Energy Information Administration (EIA) said that crude inventories in the US increased by 2 million barrels last week, while analysts expected a decline by 1.3 million barrels. Thus, crude production is gradually returning to normal after sites were closed due to storms in the Gulf of Mexico.
Gold tumbled after reaching nine-day high. The metal dropped despite the selloff in US equities and the greenback. The price of gold futures fell 0.70% to 1,950.70 per ounce. It has been moving sideways since the beginning of August, but maintains the bullish stance on larger timeframes, as demand for safe-havens persists.
In FX, the US dollar gave up initial gains that came before the European Central Bank meeting, as investors speculated that the central bank would signal the need for a lower euro. However, the ECB comments haven’t proven to be that relevant. The bank left the policy unchanged and just said that it would “carefully monitor” the rise in euro. Thus, EUR/USD is up 0.20% to 1.1837, while the USD index is down 0.06%.
The pound is down against the euro and up against the greenback. The British currency has been bearish for days amid the Brexit talks saga, as the UK intends to override parts of the current treaty with the EU.
