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 settled lower on Friday, after some easing in geopolitical unrest.
What happened: Expectations of the OPEC+ (Organization of the Petroleum Exporting Countries and its allies) continuing to cap crude production next year lent support to oil prices last week.
Crude oil notched its first weekly gain in five weeks, despite declining on Friday.
Why it matters: Last week, the OPEC+ group surprised markets by announcing a delay in its meeting due to disagreements over output quotas, which resulted in WTI oil prices declining as much as 5% on Wednesday.
The OPEC+ has now scheduled a virtual meeting on November 30 to decide on upcoming crude output for its members.
Both WTI and Brent crude recorded their first weekly gain in five weeks ahead of the OPEC+ group’s decision. However, after spiking to around $98 per barrel in September, oil prices are on course to recording the second consecutive month of decline amid a tight crude market in the last quarter of the year.
The release of the first group of hostages in Gaza lowered geopolitical risk premium. Oil prices also received support from the Chinese authorities called on banks to provide support to the country’s struggling property sector. However, a rise in US crude stockpiles limited the gains for oil.
Brent crude futures fell 84 cents, or 1%, to close at $80.58 per barrel on Friday, while WTI crude oil declined $1.56, or 2%, to settle at $75.54 per barrel.
In other energy trading, December gasoline declined 3% to settle at $2.165 a gallon, while December heating oil fell 1.9% to close at $2.836 a gallon and December natural declined by 1.5% to $2855 per million British thermal units on Friday.
What to watch: Investors will watch the OPEC+ group’s meeting this week. The release of the API’s (American Petroleum Institute) data on crude oil stockpiles, due for release on Tuesday, will also remain in focus. US crude oil stockpiles had risen by 9.047 million barrels in the week ended November 17, after an increase of 1.335 million barrels in the prior week.
Context: Wall Street stocks closed mixed on Friday as investors assessed PMI data and awaited more details on the Black Friday performance of retailers.
Details: Data released on Friday showed the S&P Global US composite PMI coming in at 50.7 in November, unchanged from the three-month high recorded in October. The signalled continued growth, albeit slow, in the country’s private sector activity.
Manufacturing PMI declined to 49.4 in November, from 50 a month ago. The figure missed market estimates of 49.8. Meanwhile, services PMI climbed to 50.8 in November, from 50.6 in the previous month, notching the highest reading in four months.
Shares of major retail shares closed slightly higher on Friday, with Black Friday kicking off the key holiday shopping season. A report by Mastercard SpendingPulse suggested that Black Friday sales (excluding automobiles) had risen by more than 2.5% year-over-year. According to Adobe Analytics, Black Friday 2023 online sales researched a record $9.8 billion, up 7.5% year-over-year.
Shares of top US retailers, including Amazon, Walmart, Home Depot, Costco, Target, Lowe’s Company, and Target, edged higher in Friday’s session.
The Dow Jones index rose by 117.12 points, or 0.33%, to close at 35,390.15, recording gains for the fourth week in a row. The S&P 500 added 0.06% to 4,559.34, while the Nasdaq 100 fell 0.12% to close at 15,982.01 on Friday. For the week, the Dow added 1.27%, while the S&P 500 gained 1%.
What to watch: Investors await the release of economic data on new home sales and Dallas Fed manufacturing index from the US today. Sales of new single-family houses in the US, which rose by 12.3% to an annualised rate of 759,000 in September, is projected to decline by 4% in October. Analysts expect the Dallas Fed manufacturing index to improve to -17 in November, from -19.2 in October.
Other Markets: European indices closed higher on Friday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index up by 0.06%, 0.22%, 0.20% and 0.33%, respectively.
Russia launched its biggest drone attack on Kyiv since announcing its full-scale invasion of Ukraine. The news sent the safe-haven US dollar index higher this morning.
Taiwan’s consumer confidence index rose to 69.40 in November, from 69.06 in the prior month. This being the highest reading since April 2022 lent support to the TWD/USD forex pair.
China’s industrial profits fell by 7.8% year-over-year to 6,115.42 billion yuan during the first ten months of the year, sending the CNY/USD pair lower in forex trading this morning.
Canada’s manufacturing sales declined by 2.7% in October, versus a 0.4% increase in September, which exerted pressure on the CAD/USD forex pair.
Mexico’s economic activity expanded by 3.3% year-over-year in September. This, however, represented a slowdown from the 3.7% growth recorded in the prior month and sent the MXN/USD pair lower in forex trading this morning.
France’s initial jobless claims and unemployed persons, UK’s CBI distributive trades, Brazil’s current account, foreign direct investment and Central Bank of Brazil focus market readout, Mexico’s balance of trade, as well as US building permits.
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 LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 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.
