DAILY MARKET REVIEW — 01/12/2016
OPEC meeting will impact all markets
The ruble strengthened significantly against the US dollar yesterday as oil prices rose. At the same time exporters have sold their foreign exchange earnings, thereby reducing the US dollar’s value.
Today’s dynamics will depend on the oil market.
Resistance: 63,2832, 63,9372, 64,4884
Support: 62,5630, 62,0633, 61,6076
Yesterday the pair fell after a slew of positive US statistics. The US ADP Non-Farm Employment Change grew more than expected along with the Manufacturing PMI. So far today China’s Manufacturing and Service PMIs came out higher than expected.
Today’s dynamics will depend on American statistics. However, investors will look toward tomorrow’s NFP report.
Resistance: 0,74169, 0,74462, 0,74881
Support: 0,73744, 0,73437, 0,73109
Yesterday, almost all US stocks declined slightly, driven by profit-taking after significant growth. However, increased oil prices provided some support for stocks. Data on the US labor market additionally helped stocks.
Today’s dynamics will depend on investor behavior.
Resistance: 2197,70, 2202,40, 2206,70
Support: 2191,70, 2186,90, 2180,30
Brent Oil Futures
Oil rose yesterday by 12% after it became known that the OPEC agreed to cut production by 1.2 million barrels per day. At the same time system of quotas for each participating country was presented. The total quota for the entire cartel is 32.5 million barrels. Meanwhile, Russia and other oil-producing countries also agreed to reduce production. However, this agreement enters into force only in January 2016.
According to analysts’ expectations, this agreement will contribute to reducing oversupply on the world oil market.
Resistance: 53,00, 53,60, 54,11
Support: 51,59, 50,85, 50,15