Dubai TV Interview, Sept 27, 2021

Speaking to Dubai TV on Monday, Mohamed Hashad, Director of Research and Development at Noor Capital, discussed the current situation across global markets, with anticipation for a number of developments over the course of the week.

Fed

The recent Federal Reserve decision was one of the most prominent headlines on the economic scene last week. The Federal Reserve did not bring anything new, contrary to market expectations, especially after upbeat economic data, improved inflation, and a recent rise in retail sales.

 Jerome Powell retreated for the second time that the date for reducing asset purchases is near, but no clear timetable has been set and Hashad’s view is that the Fed does not want to start tapering until it sees a clear development in labor markets. The effect on the U.S. dollar was positive because it will push it higher.

Evergrande

The Evergrande crisis cast a shadow over the Asian stock markets last week. There are fears that its effects will extend to the European markets, especially since they suffer from an evident decline in the manufacturing and services sector. One of the proposed solutions is for China to break up this giant entity into small entities to reduce the impact of the crisis.

Oil

There is an improvement in demand levels, especially after the recent reports from the International Energy Agency, which is evidence of the improvement in demand and the reduction in supply.

This is in addition to the continued disruption of U.S. production since the end of August due to Hurricane Ida and Nicholas, in addition to the view of OPEC+ that the current production levels may achieve a balance in oil prices, which supports the idea of ​​not changing or increasing production during the next meeting.

All scenarios are presented for oil prices with the daily developments in the markets, especially with the possibility of a new mutator of the Coronavirus after the delta mutator. Still, the current data now indicates the possibility of a price increase to 76 and 78 dollars.

Cryptocurrency

There is a big crackdown on the crypto sector with the apparent decline in Bitcoin of more than 18% over the past week. China is cracking down hard on cryptocurrencies and putting in place stricter laws on them; some central bank officials say that cryptocurrencies are dangerous and not a safe investment tool, but only a means of payment. All of this supports the decline, especially with the readiness of the U.U.S.S to impose some restrictions on cryptocurrencies, as the government sees it as threatening the global financial system