Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Crude oil prices closed lower on Friday, recording weekly and monthly losses.
What happened: Some easing in geopolitical concerns soothed supply concerns, weighing on oil prices.
The OPEC+ (the Organization of the Petroleum Exporting Countries and its allies) announced a delay to its planned meeting, which was earlier scheduled for Sunday.
Why it matters: The OPEC+ postponed its meeting to December 5, as several ministers are currently attending the 45th Gulf Summit. Markets widely expect the group to delay its plans to unwind output cuts.
The OPEC+ had earlier planned to begin unwinding its output cut of approximately 2.2 million barrels per day (bpd) in October but had announced a delay of the announcement until December 1.
Geopolitical concerns have not weighed on crude prices, with ample supplies till next year. The IEA (International Energy Agency) said there is excess supply of over 1 million bpd, or more than 1% of global output.
WTI crude for January delivery declined 72 cents, or 1.1%, to settle at $68 per barrel on the NYMEX (New York Mercantile Exchange). WTI shed about 4.6% last week and a monthly decline of 1.8%.
January Brent crude, the global benchmark, declined 34 cents, or 0.5%, to close at $72.94 per barrel on ICE Futures Europe, recording a weekly decline of 3% and 0.3% for November.
In other energy trading, December gasoline declined 2.97 cents, or 1.5%, to settle at $1.9437 per gallon, while December heating oil fell 0.5% to close at $2.193 a gallon. January natural gas futures bucked the trend to close at $3.363 per million British thermal units, up 5% on Friday.
What to watch: Investors await the OPEC+ meeting, which is now scheduled for December 5, with the group widely expected to announce a further extension to output cuts. Geopolitical concerns will also remain in focus.
Context: Equity markets in the Eurozone settled higher on Friday as investors monitored the latest inflation data.
Details: Eurozone inflation accelerated to 2.3% in November, from 2% in the previous month.
The latest reading was above the European Central Bank’s target of 2%. This sparked speculations of the ECB becoming more cautious about cutting interest rates. The central bank is scheduled to announce its rate decision next week.
France’s harmonised inflation rate rose to 1.7% in November, from 1.6% in the previous month. The figure came in-line with market expectations.
The STOXX Europe 600 index rose 0.58% to close at 510.25 on Friday, with almost all sectors recording gains.
The pan-European benchmark ended November with gains of 0.96%, after recording its worst monthly performance in about a year in October.
Tech stocks were among the top performers, adding around 1.8% on Friday. Mining stocks also recorded gains, up around 1.5%.
London’s FTSE 100 added 0.07% to close at 8,287.30 on Friday. Germany’s DAX 40 gained 1.03% to 19,626.45, while France’s CAC 40 rose by 0.78% to settle at 7,235.11.
What to watch: Investors await the release of economic data on HCOB manufacturing PMI (1300 UAE Time) and unemployment rate (1400 UAE Time) from the Eurozone today. The HCOB manufacturing PMI is expected to decline to 45.2 in November, from 46 in the previous month. Analysts expect the unemployment rate in the Eurozone to remain at 6.3% in September.
Other Markets: Asian indices traded mixed this morning, with Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index up by 0.65% and 0.70%, respectively, and Japan’s Nikkei 225 down by 0.27%.
Ukrainian President Volodymyr Zelenskyy said he plans to work directly with US President-elect Donald Trump, with Russia escalating its attack. The news sent the RUB/USD pair higher in forex trading this morning.
China’s Caixin General Manufacturing PMI rose to 51.5 in November, from 50.3 in the previous month. However, the CNY/USD forex pair remained under pressure.
The Philippines said its manufacturing PMI climbed to 53.8 in November, from 52.9 in the previous month. The country’s manufacturing activity expanding for the fifteenth straight month sent the PHP/USD pair higher in forex trading this morning.
Australia’s corporate profits declined by 4.6% in the third quarter, missing market expectations of a 0.8% gain, which exerted pressure on the AUD/USD forex pair.
Vietnam’s S&P Global manufacturing PMI declined to 50.8 in November, from 51.2 in the previous month, sending the VND/USD pair lower in forex trading this morning.
Spain’s HCOB manufacturing PMI (1215 UAE Time), Italy’s HCOB manufacturing PMI (1245 UAE Time), unemployment rate (1245 UAE Time) and GDP growth rate (1400 UAE Time), France’s HCOB manufacturing PMI (1250 UAE Time), Germany’s HCOB manufacturing PMI (1255 UAE Time), South Africa’s ABSA manufacturing PMI (1300 UAE Time) and total new vehicle sales (1600 UAE Time), UK S&P Global manufacturing PMI (1330 UAE Time), Mexico’s foreign exchange reserves (1400 UAE Time), business confidence (1600 UAE Time) and S&P Global manufacturing PMI (1700 UAE Time), Brazil’s S&P Global manufacturing PMI (1700 UAE Time), Singapore’s SIPMM manufacturing PMI (1700 UAE Time), Canada’s S&P Global manufacturing PMI (1830 UAE Time), as well as US S&P Global manufacturing PMI (1845 UAE Time), ISM manufacturing PMI (1700 UAE Time), and construction spending (1700 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
