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Oil jumps before OPEC+ meeting today

TAKEAWAYS


•    Oil jumps 2% day before the OPEC+ meeting
•    Bitcoin back over $50,000 level
•    Bond yields jump again, cause pain in stock markets
•    US dollar steady despite uptick in yields, drop in stocks
•    ‘Tech wreck’ continues as Nasdaq drops over 2% and below 13,000 level
•    S&P 500 gives back most of weekly gain
•    Dow Jones holds steady led by energy and financials
•    FTSE 100 jumps on surprise UK budget “super deduction”
•    Gold price sinks 1%, falls over $20 and below $1720 per oz handle
•    Shares of Amazon drop under $3000 for first time since November
•    US ISM Services PMI sees big miss: 55.3 vs. 58.7 expected
•    DAY AHEAD: Australia retail sales, EZ retail sales, Powell speech, Slack earnings


BEST CHART
UK100 – Daily Candlesticks

 


 
Source: GKFX / MT4 (March 3, 2021)

The UK100 remains locked in by Fibonacci retracement levels of the massive March 2020 decline. The price is currently supported by a rising trendline but the recent lower high suggest it could give way and open up lower prices.


GURU WISDOM


“The goal of a successful trader is to make the best trades. Money is secondary.” - Alexander Elder


MARKETS


*Daily closing price
↘ EUR/USD    1.2064        (-0.20%)
↘ GBP/USD    1.3951        (-0.01%)
↗ USD/JPY    106.97        (+0.29%)
↘ S&P 500    3820.00    (-1.30%)
↘ Gold        1715.86    (-1.28%)
↗ Oil (Brent)    64.07        (+2.19%)
↗ Bitcoin    50,649.0    (+6.43%)

 


NEWS


It had been anticipated that OPEC and its allies including Russia known as OPEC+ would increase oil production as prices gained at its meeting tomorrow. Reports that in fact the cartel might decide to rollover current quotas saw the price of oil pop. The reports out of OPEC overshadowed news that the US saw an unexpected rise in crude inventories. 

 

A much-feared pickup in bond yields spoiled the party in stock markets. The Nasdaq dived over 2% as well-known tech stocks dropped in reaction to the higher cost of borrowing. Not all sectors of the stock market were lower – it was very much a continuation of the ‘tech wreck’ with shares of Amazon sinking below $3000 for the first time since November. Financials, industrials and energy stocks all performed well. 

 

The FTSE 100 was a notable gainer across European stock indices after UK Chancellor Rishi Sunak announced a surprise “super deduction” tax break for UK corporations over the next two years, which will be followed by steep tax hikes later.

 

Rising yields slammed the price of gold down towards a 9-month low and under $1720 per oz. 

 


DAY AHEAD 


*Times in GMT
00:30 – Australia Retail Sales s.a. (MoM)(Jan) [0.6 % Exp vs. 0.6 % Prev] 
10:00 – Eurozone Retail Sales (MoM)(Jan) [-1.1 % Exp vs. 2 % Prev]
15:00 – US Factory Orders (MoM)(Jan) [2.1 % Exp vs. 1.1 % Prev] 
17:05 - Fed's Chair Powell speech
 

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