04 Jan

The market is waiting for the OPEC+ decision. Gold increased sharply against the background of a significant drop in bond yields

January 4, 2021

by JustForex

The market opening after the holidays looks somewhat alarming. S&P 500 futures demonstrates growth against the background of a surge in oil prices, but other parts of the market indicate that investors are looking for defensive assets. Bond yields are decreasing and gold moved sharply to growth. The mining companies and energy sector are the growth leaders.

Economic growth continues to gradually recover. PMI points to the continued consistent growth in Asia, boosted by strong demand for Chinese exports, although China’s recovery has slowed down slightly. Against this background, European stocks started trading with confidence, adding 0.45%.

But the overall market direction isn’t synchronous. The yield of the British Gilts approached their historical lows and reached 0.155%. German Bonds fell to -0.615%. American Treasuries decreased by 0.920%. After such a sharp drop in yields, gold rose sharply in price, reaching $ 1930 per troy ounce.

The outbreak of new diseases may push investors to seek protective assets. The US has set a new daily record of 300,000 infections. A state of emergency is being considered in Tokyo. Against this background, Japanese indices are inferior to others.

Today, investors will be focused on the OPEC+ decision on oil production. It’s interesting for the market whether the participating countries will be able to come to an agreement at which oil prices will continue to rise. In anticipation of a positive decision, oil futures renewed their highs.

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Stock indices are demonstrating steady growth, while the dollar is declining.

S&P 500 (F) 3,762.62 +13.87 (+0.37%)

Dow Jones 30,606.48 +196.92 (+0.65%)

DAX 13,796.70 +77.92 (+0.57%)

FTSE 100 6,598.55 +138.03 (+2.14%)

USD Index 89.495 -0.399 (-0.44%)

Important events:
  • – German Manufacturing PMI (Dec.) at 11:55 (GMT+2);
  • – Eurozone Manufacturing PMI (Dec.) at 12:00 (GMT+2);

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.


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