Fear and hatred in the Middle East

By 07/01/2020News
Morning Stock News

Gold   1562,29

EURUSD   1,1191

DJIA   28700,50

OIL.WTI  62,60

DAX   13157,18
(+ 0,01%)

Late on Sunday evening, Iran announced that it was withdrawing from the nuclear deal with the IAEA. And will enrich uranium as it sees fit. This news was in addition to the attacks on the Americans in Kenya and the launch of missiles that exploded near the U.S. Embassy in Iraq.
Oil markets opened at night in fear, there was a gap, then a couple more hours of growth when the Brent price for the first time since May exceeded $ 70 per barrel. And then exactly what we predicted in yesterday’s newsletter happened. Below is the hourly chart for WTI oil.

WTI chart of the day

At peaks, oil producers sold a huge number of futures contracts. Sold to whom? Speculators who entered the market at night, hoping for continued growth. And the price went down. By evening the gap was already closed, and no new negative appeared in the market. Bulls need to be very careful not to repeat the situation completely similar to that which occurred after the attack of terrorists in Saudi Arabia.


Gold feels great. On the one hand, states printed a huge amount of money last year, on the other hand, the growing geopolitical tension is forcing investors to buy protective assets. At the highs of the day the price of gold metal rose to 1585$, then there was a slight pullback on the background of profit taking.


On Monday, German actions were interesting. In the morning the DAX 30 index fell sharply, then a strong growth began, which led to a full recovery of lost positions. And the American stock market doesn’t care. Unlike in Europe, the futures on the S&P 500 declined only a little this morning and then rose strongly, closing even above Friday’s close. .

What awaits us today?

08.30 Swiss consumer price index for December
11.00 EU Consumer Price Index for December
16.00 December ISM Business Activity Index for US Services

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