Weekly Market Review – November 21-25 2016
Oil will be main market mover this week
Last week the USD continued its recovery process after the US election, as Trump promised to expand fiscal stimulus. Additionally, traders are anticipating a Fed rate hike.
This week traders will pay further attention to US economic data.
The US stock markets closed last week in an uptrend thanks to positive US economic statistics.
The Fed’s Jennet Yellen noted that the time of low interest rates will soon come to an end and there is a strong possibility we will see a rate hike in December This piece of news provided support for the markets.
Due to the absence of important market drivers, major stock exchanges in Europe have spent the past week in a narrow range. Meanwhile, support for the stock market was offered by the central EU banks’ representatives. Arguably the most important one was the ECB’s Governor Mario Draghi, who stated he’s in favor of continuing with the current monetary policies. Nevertheless, the upcoming presidential elections in France and the Netherlands will take a toll on the markets.
Brent Oil, Daily
Oil quotations grew by 6% last week as investors were waiting for world’s largest oil producers’ meeting in Doha (Qatar). The countries were able to find a common solution on an oil output freeze. However, the final verdict on the matter will be submitted on November 30 at the scheduled OPEC meeting in Vienna.