Technical correction triggered by panic selling was proved short-lived. Asian markets rebounded on Black Friday as investors calmed down and took this pullback as an opportunity to buy on dips.
Hang Seng Index closed 158 points or 0.53% higher, and Singapore’s STI climbed 19 points to finish at two-year high of 3,442 points.
US equity markets refreshed records again with S&P500 index closing above 2,600 points for the first time, as the Black Friday sales lifted market sentiment across retail and technology sector. Technology stocks were leading the market gains and NASDAQ index climbed 0.32% to its all-time high of 6,889 points.
This week, investors will be eyeing on Germany and Eurozone inflation data to assess the future monetary policy outlook of the ECB. Euro rallied against the greenback last week amid dovish-biased Fed minutes versus robust Eurozone PMI data. Data shows that the German economy is expanding at faster-than-expected pace, which helped to underpin uncertainties surrounding the country’s political situation.
Technically, EUR/USD has entered into a short-term bullish trend with its 10-Day simple moving average and SuperTrend (10, 2) both sloped upwards. Strong Eurozone economic data could potentially give euro another boost this week. The immediate support and resistance level for EUR/USD could be found at around 1.182 and 1.190 respectively.
WTI and Bent Crude oil advanced ahead of major oil producers’ meeting this Wednesday in Vienna. OPEC and Russia appear to be in agreement extend the oil production cut until the end of 2018 but the final details need to be worked out this week. Technically, Brent oil cash product is facing some resistance at $64.6 area – which is also a 161.8% Fibonacci extension level. Breaking out above this level will open room for further upside towards the 200% Fibonacci extension level of $68.0.
Crude Oil Brent – Cash
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