Market Report: Political news and Oil
On Monday all the indexes closed the session very higher, this positive market reaction was for 2 big important news, First of all the major oil producer Russia said it was ready to join OPEC in an output freeze deal loosely agreed in September. The deal is aimed at cutting the global supply overhang that has weighed on prices. And the oil price reaction was very positive, going up more than 3% breaking the resistance of the 50 usd, taking the energies stocks companies with him, and all the markets.
And the second important new was the optimism over the U.S. presidential election campaign, because all the people in Wall Street wants Hillary as the next president, and she won clearly in last presidential debate. Also political news could move markets today, after a poll showed that Democratic presidential nominee Hillary Clinton has doubled her lead over her Republican rival Donald Trump. According to the latest Wall Street Journal poll, Trump now holds support from 38 percent of likely voters. Support for Hillary Clinton, meanwhile, has risen to 52 percent. Trump’s decline in the polls comes after the release of a video from 2005 in which he made crude comments about women. The poll was conducted over the weekend, after the video emerged on Friday, and was completed before Sunday’s presidential debate.
European markets were lower in morning trade Tuesday despite a rally in oil prices, is time take a little of profits, European Euro Stoxx 600 Index was lower with all major bourses and sectors in negative territory. After jumping as much as 3 percent on Monday, oil prices were back in focus with prices dipping in early trade.
Technically the correction may continue at least after the U.S election in November, more specifically the S&P 500 index trades along its July – August consolidation, following the early September decline. The nearest important level of resistance is at around 2,170-2.180, marked by recent local highs. On the other hand, support level is at around 2,140-2,150, marked by local lows. The next important support level remains at 2,120. The market trades within a correction following recent rally.
Concluding, the broad stock market extended its short-term consolidation on Friday, as the S&P 500 index continued to fluctuate along the level of 2,150. There have been no confirmed negative signals so far.
The technology Nasdaq 100 futures contract remains relatively stronger than the broad stock market, as it continues to trade close to all-time high. It is within an intraday uptrend, following Friday’s move down. The nearest important level of resistance is at 4,880-4,900. On the other hand, support level remains at 4,830-4,850.
Graphics by: www.etoro.com
GOOGLE – ALPHABET
Everyone was talking about Google today. They released several new products and they’re going after some major trends in tech. All of that we can see also in his shares because is in a very positive trend, breaking records levels everyday.
Graphics by: www.etoro.com
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