Noor Capital | Interview with Muhammad Hashad on Dubai TV – September 11, 2023

Dubai TV hosted Mohammed Hashad, Director of Research and Development at Noor Capital, member of the American Society of Technical Analysts, to comment on the performance of the most important assets in the financial markets this week.

Asked about US stocks, which moved differently during the past week, but ended the trading week with remarkable gains amid anticipation of the Federal Reserve meeting, Hashad indicated that there was a sharp downward trend dominating US stock trading since the beginning of last week’s trading, specifically in the wake of The International Monetary Fund’s warning of a possible slowdown in the global economy, in a sign from the international organization that the global economy, until now, is still performing poorly.

Hashad also referred to the decline of the technology giant, that is, the shares of Apple, which witnessed a decline of 6%, and this of course led to a decline in the appetite for risk in the stock market, but with the imminent release of inflation data and with the Federal Reserve meeting approaching, investors are now still betting that there is no urgent need for the Federal Reserve to raise interest rates, especially since the recently released economic data indicates a slowdown in the US labour market, an increase in unemployment rates and also indicates a decline in average monthly and annual wages, and thus the possibilities of keeping the interest rate unchanged, which creates a favourable climate for stocks.

Recent developments, in the language of data and risk appetite, were greatly reflected in the performance of US stocks, in addition to the recent economic data that emerged from the manufacturing purchasing managers’ index, which recorded last August an increase, better than July’s reading.

Asked about oil that was seen this morning, Monday, September 11, about its highest level since 2022, and why it recorded these gains and asked also about the optimism seen on the oil market and whether there is a chance to break the $100 per barrel level, Hashad stated that oil prices are hovering at the time about the current level which is at $87 per barrel, which is the highest level recorded since November 2022.

Hashad added: “There are several important economic developments that have pushed prices higher, and the idea of scarce supply still dominates oil investors greatly, with the possibility of a growing global demand for oil.”

Hashad pointed out that the Saudi-Russian decision regarding the continuation of the voluntary reduction plan by about one million and three hundred thousand barrels per day. One of the most important factors that helped support oil prices significantly and kept them high, in addition to the decline in oil supplies by the major oil exporters in the world, but the slowdown in the global economy still limits the gains that black gold can achieve, particularly in light of the challenges facing China as it is the second largest oil consumer in the world.

With regard to economic data, and in light of the many economic data that investors are waiting for this week and the most important data that investors should focus on, Hashad stressed that the important data in the new trading week includes the rate of change in unemployment benefits and the gross domestic product from the United Kingdom, in addition to the monetary policy statement of the European Central Bank and the press conference afterwards, particularly, the statements of “Christine Lagarde” President of the European Central Bank after the policy decision, and the most important of all is the US inflation data and retail sales data.

As for gold prices, Hashad indicated that gold is now hovering above the level of $1900 per ounce, and this is a very good technical support level around the 200-Day Moving Average, and he added: “We are waiting for inflation data, so, if it comes less than the previous reading, and I believe it means that it is likely to support gold prices above the level of one thousand nine hundred and eighty dollars per ounce, and on the contrary, if inflation continues to rise, we may see the possibility of raising interest rates, and thus putting pressure on the price of the precious metal”.