Bullish rally in stock markets | 06 9月 2019

Bullish rally in stock markets


#WTI:


The National Hurricane Center USA issued a hurricane watch for northwestern Bahamas and said the risk of "devastating hurricane-force winds along the Florida east coast early this week continues to increase." U.S. oil and gas corporations may reduce hydrocarbon production in the Gulf of Mexico. This is factor will have a positive impact on the cost of oil. The Joint Ministerial Monitoring Committee OPEC, which oversees the production agreement, said this week that compliance on that agreement was actually at 159%. This is factored has led to a 55 million barrel reduction in U.S. oil reserves over the past three months.


Trading recommendation: Buy 54.40 and take profit 56.05.


Bullish rally in stock markets


XAUUSD:


We're expecting a bearish rally in the gold market this week. Gold and stock markets have an inverse correlation. This is factor will have a strong impact on the course of trading. Low yields on Government bonds are forcing investors to buy corporate shares. Low interest rates on bonds are observed around the world. Central banks are implementing a soft monetary policy. This is factored contributes to lower interest rates in the bond market. A bullish rally in the stock markets will force investors to sell gold.


Trading recommendation: Sell 1530 and take profit 1509.


Bullish rally in stock markets


#SP500:


The US stock market showed a 3% increase in quotations last week. Traders are expecting the European Central Bank and the Federal Reserve to cut interest rates in September. Central banks stimulate economic growth. Interest rates in United States moved lower with the 10-Year yield falling to 1.501%, the 2-Year yield was 1.51%. The spread between the 10-year yield and two-year yield narrowed to negative 0.99 basis points. This is a positive signal for the stock markets. Low yields on Government bonds are forcing investors to buy corporate shares.


Trading recommendation: Buy 2895 and take profit 2950.

 

David Johnson
Analyst of «FreshForex» company
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