Daily Analysis - 08/11/2019
OPEC and Russia are analyzing a variety of choices to preserve the balance in the oil market before the critical December conference. OPEC and its allies agreed late last year to lower oil production by 1.2 million barrels per day to sustain prices. The deal will continue until March 2020, and the producers are expected to gather in Vienna to examine the terms of the policy on December 5-6. Peter Lee, senior oil and gas analyst at Fitch Solutions, said “The house view is that the meeting is likely to reaffirm the group’s commitments to the cut that is already in place.”
On Friday Gold was moderate following a fall of up to 2% in the previous day, while anticipations of progress in the US-China trade agreement supported the risk-on viewpoint, changing the desire for the metal.
Stocks surged and the dollar index increased following executives yesterday that stated that China and the United States have agreed to stop taxes on each other’s’ goods as part of the first phase of a trade agreement.
Yesterday the popular greenback persevered its profits against the Japanese yen while traders purchased riskier assets covering the news that China and the United States agreed to stop taxes to enable the start of an introductory agreement to stop their trade conflict.
Yesterday officials from both sides said that China and the United States have agreed to lift tariffs on each other’s’ products in a “phase one” trade agreement if it is closed.
On Friday Asia stocks generally moved lower while investors analyzed recent improvements toward the US-China trade conflict.
Mainland Chinese shares discarded previous earnings. The Shanghai Composite fell almost 0.5% to 2,964.17 while the Nikkei 225 advanced 0.26% to close at 23,391.86
