US futures are also trading higher this morning, but traders are cautious ahead of the FOMC meeting and traders are not willing to take much of risk. The main focus during the FOMC meeting will be towards the wording of the statement and if the Fed are still going to stay dovish. Most of the economists are predicting that if they do remove the phrase of considerable time frame from their statement, then it is more than likely that the Fed will increase the rates within the next 6 months. However, the falling oil price could become a brand new mandate for the Fed and they may start paying more attention to this.
European markets are also trading higher this morning, and trying to recover some of their losses which we experienced last week. It is the energy sector which is lifting the stock markets higher after a heavy sell off, but this is despite the fact that we had a comment over the weekend from UAE that OPEC may not even consider to lower the output even if it price falls below the $40 level. This is the biggest threat for the US Shale oil and for the banks and hedge funds which are holding their debts because the breakeven point for the US shale oil is between $60-65 and it is already trading well below that.
The Stoxx Europe index is up this morning by nearly 0.52% and this is the first time in nearly six session that the index is trading up. As the for the energy sector, Afren and Tullow Oil are both making a very noticeable gains this morning and are up nearly 8.79% and 5.20% respectively. Another factor which is moving the European market higher this morning are the comments from European central ban Governing council member, Ewald Nowotny, who has highlighted that fiscal measures should be taken to minimize the risk for the Euro Zone.
US futures are also trading higher this morning, but traders are cautious ahead of the FOMC meeting and traders are not willing to take much of risk. The main focus during the FOMC meeting will be towards the wording of the statement and if the Fed are still going to stay dovish. Most of the economists are predicting that if they do remove the phrase of considerable time frame from their statement, then it is more than likely that the Fed will increase the rates within the next 6 months. However, the falling oil price could become a brand new mandate for the Fed and they may start paying more attention to this.
European markets are also trading higher this morning, and trying to recover some of their losses which we experienced last week. It is the energy sector which is lifting the stock markets higher after a heavy sell off, but this is despite the fact that we had a comment over the weekend from UAE that OPEC may not even consider to lower the output even if it price falls below the $40 level. This is the biggest threat for the US Shale oil and for the banks and hedge funds which are holding their debts because the breakeven point for the US shale oil is between $60-65 and it is already trading well below that.
The DJ Euro Stoxx 50 index is up this morning by nearly 0.52% and this is the first time in nearly six session that the index is trading up. As the for the energy sector, Afren (LONDON:AFRE) and Tullow Oil Plc (LONDON:TLW) are both making a very noticeable gains this morning and are up nearly 8.79% and 5.20% respectively. Another factor which is moving the European market higher this morning are the comments from European central ban Governing council member, Ewald Nowotny, who has highlighted that fiscal measures should be taken to minimize the risk for the Euro Zone.
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.