Daily Analysis - 05/12/2019
OPEC and its partners will start gathering in Vienna as of today, with expectations that a deeper production cut will be the main theme of the meeting. The question of whether the organization will make further reductions to its production at the two-day meeting will probably encourage traders today to speculate. The members of OPEC and a club of allied non-OPEC producers driven by Russia are anticipating at least to maintain the current production cuts at their level of 1.2 million barrels per day up to mid-2020. The deal is currently scheduled to terminate in March. OPEC meets today and the group will be accompanied by its non-OPEC associates tomorrow with a final resolution expected late afternoon.
Yesterday U.S stocks were supported by a Bloomberg report that announced that the US and China are getting closer to secure a trade agreement. The Nasdaq Composite improved 0.5% to 8,566.66.
The Dow Jones Industrial Average ended up gaining more than 146 points at 27,649.77. The S&P 500 advanced 0.6% to close the session at 3,112.75.
On Thursday the famous safe haven Gold went up while confusing indications regarding the ongoing trade war between Washington and Beijing increased the skepticism about the trade deal following positive remarks by US President Donald Trump. Gold surged to an approximate 30-day top of $1,483 yesterday. However, completed its session under, following Trump stating that trade discussions with China were going “very well.”
On Thursday the greenback wobbled while previous assistance from upbeat trade war remarks by the US President Donald Trump lost momentum and traders waited on edge over China-US pressures.
Now overnight, President Trump said the opposite that the discussions to fix the damaging trade conflict with China were going “very well.” Bloomberg also announced that the US and China came near to a deal.
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