Summary:
- Stock markets make a bright start to the week
- DE30 rebounds from support zone
- Oil also looking to recover but gains fade as the session wears on
- Latest CFTC data reveals interesting developments
- Bitcoin adds to recent gains despite Chinese headline
Late on in Friday’s session, US markets staged an impressive comeback with the US500 managing to end the day in the green after surviving a retest of the previous low at 2531. Today’s trade has seen the market attempt to move higher again and the index has moved above Friday’s highs as the market seeks to recover some of the damage done during the recent spate of selling.
After huge drop on Friday sent DE30 into the range of 11860-11990 pts support zone the benchmarks has rebounded closing the day with the bullish pin bar. In turn the beginning of the week sent prices towards the 12355 pts resistance level. In case the bulls manage to break above this handle a further rally towards 12645 mark and 200-session moving average lying above may be possible.
Last week saw some major declines in the price of crude with Brent Oil sliding almost 8% but the start of this week has been a little more upbeat for the markets with both Brent and Oil.WTI rising earlier on. Some upbeat comments from OPEC Sec. Gen Barkindo following the cartel’s latest monthly report weren’t enough to see the market gain further and by the European close the early gains had been handed back.
The last week saw a gargantuan surge in both realized and implied volatility which in turn sent equities lower, however, other markets such as currencies or bonds turned out to be much less volatile during the whole week. Putting all of that together one may draw conclusions that the latest sell-off could have been just a short-lived one as it did not spill over elsewhere. After all, it’s worth taking a closer look at the weekly CFTC report released on Friday which seems to offer a notable clue with regard to bond traders’ behaviour.
Bitcoin has begun the new week with a moderate gain despite quite downbeat revelations from China, however, no details have been revealed as of yet. What are we writing about? As everybody knows China accounts for a lion’s share of cryptocurrency trading therefore each news coming from there might contribute to larger moves in the Bitcoin price and other virtual currencies alike. According to the Chinese People’s Daily it’s necessary for the country to cool down Bitcoin investments.