ZuluTrade Blog

Market View

Market Recap - China disappoints, OPEC gives hope

Wednesday, May 15, 2019 10:34 AM GMT

Yesterday it was OPEC’s turn to publish its monthly report and provide with insights on global growth and the oil market. Global growth for 2019 continues to be projected at 3.2% with upward revisions for China (6.2% expected GDP growth in 2019 vs 6.1% expected growth at the April’s report) and the USA (2.6% vs prior 2.4%) and downward revision for Japan (0.4% vs prior 0.2%).

There was not downward revision for the demand growth for oil, which currently stands at 1.21mb/d (million barrels per day) and there has been a downward revision of the non-OPEC supply (2.14mb/d supply vs prior 2.18mb/d). The Iranian production is currently at 2,5mb/d while both the production of Saudi Arabia and the UAE has not increased, compared with their March production. The general picture is that the report potentially supports the price of USoil (WTI) and UKoil (Brent).

Yesterday equities managed to stop their downtrend. Dow Jones managed to close above the 200 Day moving average level. Nikkei225, Dax30 and FTSE100 rebounded. Nevertheless, the ZEW economic sentiment for Europe was disappointing and today’s macroeconomic releases from China (fixed asset investment, industrial production, retail sales, unemployment) were below expectations.

Today’s calendar includes the GDP reading of EU, US retail sales, US capacity utilization rate, US crude oil inventories and Canadian inflation.



The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader.Opinions expressed in the report do not represent the opinion of Zulutrade and do not constitute an offer or invitation to anyone to invest or trade.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.