ZFX: Higher oil keeps sentiment positive, US stocks reversed
Monday (May 4) news review
- Oil prices are still the key concern of the market. It is reported that the crude inventory builds at Cushing, a key place for WTI physical delivery and storage, is slower than expected. In addition, the market expects countries will restart their economies by steps, and the OPEC+ have also begun the production cuts under the new agreement, which also further boosting the oil prices. The June contract for WTI crude futures climbed above the $20 mark, a rally of four consecutive days.
- The rising tension between China and the US has triggered the demand for safe-haven. Both the dollar and gold got support from investors.
- The market sentiment is cautious, but the rebound of oil prices was positive to risk appetite. The three major indexes on Wall Street regained lost ground in the earlier session and finally edged higher, which the Nasdaq rising more than 1%.
- The situation of the coronavirus pandemic is still not that optimistic, with more than 3.6 million confirmed cases worldwide and over 250000 deaths. The outbreak in Europe is slowing down continually, but Russia has become a “severe” place, with over 10000 confirmed cases for two consecutive days.
ZFX analyst Jacob Leung said that the rally of oil prices is undoubtedly supportive to the whole market, but uncertainty still exists, no matter the tension between China and the US or the pandemic. The sentiment will be sensitive to the bearish factors in the coming days, like the employment figures of the US, which may make the optimism short-lived.
Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.