12, September 2017

SP 500 index updates historical highs

In the beginning of the week, global markets are experiencing a return of risk interest. After the previous week sale-off, equity assets have fallen in price and became cheaper and more attractive for medium-term longs. The increase in appetite for risk led to US dollar gain, the dollar index tried to return to the 92-point area. As for major pair the EURUSD again fell below the level of 1.20. In the coming days, the monthly reports on the oil market from the IEA and OPEC will be in the market spotlight, as well as data on the economies of China and the United States. The most important data of the week is US CPI.

On Tuesday, US markets opened positively. The SP 500 broad market index again updated historical highs amid positive market sentiment and the return of interest in risk.

The weakening of Irma, the second major natural disaster that struck the United States after hurricane Harvey, mitigated fears about the seriousness of its financial implications.

The market also threw out North Korea's threat that the US will soon face the "greatest pain that it has ever faced" after the US on Monday tightened sanctions against Pyongyang due to its nuclear tests.

Oil prices weakened somewhat and moved to consolidation at the level of 53.50, after support from the hurricane Irma comes to naught and the market returns to normal trading conditions. From a technical point of view, the picture assumes an intensification of a downward trend in the oil market.

At the last week's trading, the price reached a strong and significant resistance level of 54.56, after which it moved lower. This fact, as well as the long upper shadow, suggest, if not a turn, then at least a correction to the levels 53.00, 52.60, and 52.00.

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