No one expects surprises during the New Year holidays. This year, however, there was a 9-point surprise on a 10-point scale. We are talking, of course, about the murder of General Soleimani of Iran in Iraq. What he was doing in Iraq is of little interest anymore. The fact remains that the world is faced with a sharp increase in geopolitical tensions.
Chart of the Day – WTI
Naturally, oil quotations reacted the strongest. The Brent brand grew stronger, WTI slightly smaller.
What is crucial to pay attention to traders? Remember the attacks on Saudi Arabia’s oil infrastructure. There was a powerful up-gap, it’s on the chart. Then the price went down, killing a huge number of bullish trades.
Now the situation could happen again. If there is no new news in the coming days, such as an attack on the Americans, the oil producers will sell a huge number of futures (they are still doing it now), recording future shipments of physical oil.
The gold market was in a narrow corridor for 2 months. As we noted, the narrower the range, the more powerful will be the exit from it. That’s exactly what happened on Friday. As the tension rose, the gold metal just shot up. So far, there’s no reason to wait for the reverse to happen.
Stock indices all over the world have collapsed. The Americans played back some of their losses by Friday’s close. But in the Gulf countries, things are much sadder. By the way, shares of the world’s largest oil company Saudi Aramco have fallen to their lowest levels since the ICO.
Monday is very important to understand the dynamics of stock and commodity markets.
What’s waiting for us today?
08.00 Retail sales in Germany for November
10.00 Composite index of business activity in the EU manufacturing sector for December
10.30 UK Service Business Index for December
15.45 US Service Business Index for December
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