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Speaking to Dubai TV on Monday, Mohamed Hashad, Director of Research and Development at Noor Capital, explained the recent developments impacting global markets, with anticipation for the upcoming events.
Where are US stocks headed and will oil continue to rise? This and more in the next report.
US Stocks
The past week was crowded with economic data and central bank decisions, some of which were positive and benefited the main indicators for the markets, increased risk appetite, and turned the attention of market participants towards stocks. US President Joe Biden announced a bipartisan agreement on infrastructure spending. US stocks received a lot of optimism as a result of positive data last week and a noticeable decline in the number of unemployment benefits claims, in addition to the increase in the US per capita income that provided a boost to the stock market. Dow Jones is stable above 34,000 and we may witness more gains, but the markets are waiting for the US jobs data that will give us an indication of whether the Fed will continue in this approach or gradually raise interest rates, which will affect stock prices.
Oil
Oil did not see any bearish trading session over the past week, stable at $74 a barrel and this level was last seen in 2014 with the slowdown in talks with Iran is one of the reasons that led to higher prices and we believe the pause in talks will continue for more than ten days. In addition to the decline of the American drilling rigs to 372 rigs, the markets are struggling with a decline in production, in addition to the recent report of the International Energy Agency, which indicates the recovery of global demand for oil, which established a good support ground around the level of 72 and may lead it to levels of 75.
Gold
The absence of political and economic stimuli will put pressure on gold, and we see a stable transverse range from below at 1770 level and on the upside below 1787 level. We believe that if the yellow metal breaks the 1770 level, it will extend the downward wave to 1734, if the US job report comes in the interest of the dollar, will lead gold to a difficult place
Bitcoin
The recent news affects the confidence of investors in Bitcoin, and some were betting that Bitcoin is the digital gold, but I think this is a misconception, as losses exceeded 7%, especially with the restrictions imposed by China on the bitcoin, which led to the disruption of about half of the amount of Bitcoin produced, with trading stability below the psychological barrier with breaking the recent bottom will extend Bitcoin’s losses to the 25,000 level.