Oil Hasn’t Recovered Yet and is Still Down

Oil Hasn't Recovered Yet and is Still Down

Oil Hasn’t Recovered Yet and is Still Down

Good Morning

So what started as a pre-market sell-off of epic proportions, ended up as a stock market rally. European and US markets all ended up more than one percent, but the big gainer overnight has been the Nikkei, which at the time of writing is up more than 6.5%! This is because it has had a lot of making up to do following the sell-off it saw in the early hours of yesterday morning, when the world realised what was ahead of it.

We're not entirely sure how the market has done a U-turn from the perception of doom that The Donald was thought to be bringing with him if he were to make it to the White House, but we'll take it – in the knowledge that the market might well be climbing higher up the cliff face before it falls off it.

For those that need a reminder of what he has in store for his first 100 days of office, NPR has the article and its worth a read, because a lot of this stuff isn't exactly going with the flow. There's said to be some conflict with Senate leader Mitch McConnell as to the priorities of what's being proposed – including infrastructure spending, which apparently isn't as high on his list as it is on Trump's – but if this list is to be implemented there's certainly a lot of work to be done.

One thing that won't be done before Obama leaves office is the Trans Pacific Partnership. That deal isn't going to be debated before the end of the year, so there's little to no chance of that going through. Though, to be fair, Hillary wasn't a massive fan of the deal anyway, so it might have been difficult to push it through with either outcome

In Europe, politicians must be getting worried about elections next year. France, Germany and Holland have elections scheduled and Italy might do too, if Renzi doesn't get his way over his political reform referendum in a few weeks time. In each country there are right wing or anti-establishment parties that will have picked up a lot of momentum from yesterday's outcome.

One thing that hasn't recovered overnight is oil, which is still down around the $45 barrel mark. There's been a lot of talk about reinstating mothballed exploration projects once the price becomes viable, but with Trump's plans to ramp up resources production within the US, a price north of $50 again might be a long shot.

Today we're looking at another range bound day in FX markets. European equities are likely to trade higher again today off the back of Asia's momentum and then maybe that carries through into the US.

Have a great day

©Hamilton Court FX

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Recent .

Dogecoin is going to the moon… literally!

Dogecoin is going to the moon… literally!  While the cryptocurrency markets have been put through the mill the past few weeks, Dogecoin managed to steal the spotlight …

Read More →
Stock of the Week: Apple in huge demand, beats estimates by billions.

Stock of the Week: Apple in huge demand, beats estimates by billions. Apple beat estimates for quarterly earnings by billions of dollars. We look at …

Read More →
Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!  

Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!   It has been a momentous week for Facebook CEO Mark Zuckerberg who …

Read More →
Big Tech earnings roll in – Huge profits for Google, Microsoft and more! 

Huge profits for Google, Microsoft and more! Major big tech companies have released their quarterly earnings. We look at how some of the world’s biggest businesses performed so far this year!     Google, …

Read More →
MetaTrader 4 vs MetaTrader 5 – which is the better platform?
Bitcoin bounces back: Is buying the dip worth the risk?

Bitcoin bounces back: Is buying the dip worth the risk?  Bitcoin has recovered some of its losses following its fall from a record high of $65,000. Considering the crypto king’s astonishing performance in 2021, should …

Read More →
Oil summit: Waste of time
Oil market outlook: bumpy ride ahead?

2020 has been disastrous for the oil markets, however, it appears that oil has recovered most of its losses and is now hovering near pre-pandemic levels. In today’s article we will take a look at oil’s recent performance and explore the opportunities that may lie ahead.

Read More →