The oil market on Tuesday saw a correction on the week’s growth, albeit a pretty weak correction. On 9th August, Brent fell 0.4%, being unable to hold at the $45 per barrel level, and closing at $44.97. On Wednesday morning, the fall in oil quotes is continuing, although the stock market players have been trying their best to take $45 per barrel and then even strengthen above it. The morning of 10th August sees Brent on the IPE for $44.92, but the maximum price has already risen to $45.03.
Gold prices on 9th August gained 0.3%, hitting $1339.92 per troy ounce. This could be connected to the rise of the dollar against world reserve currencies. Gold is up 0.9% this Wednesday morning and we believe that today will see a bull mood take the market by the horns.
The Dow 30 remained pretty much unchanged on Tuesday, closing slightly up 0.02%, and the S&P 500 rose half that amount (0.04%). Wednesday morning for the S&P on Tuesday has so far seen the same 0.04% rise. The Asian stock markets are mixed this Wednesday. The Nikkei 225 is up 0.1% and the China A50 is down 0.05%. However, the Hang Seng has risen 0.4% and the DJ Shanghai has lost 0.12%.
The Chinese state department for currency control today has noted that in Q2 of 2016, FDI in the financial structures of the country was at 8.34 billion yuan (1.25 billion USD). FDI in Chinese financial institutions rose to 46.21 billion yuan (6.9 billion USD). The Chinese regulator is concerned about the capital outflow abroad, but the stats above indicate that the inflow of foreign capital into the Chinese People’s Republic is pretty significant and desirable for the government in its struggle to guide its county out of economic crisis.
China is continuing to achieve in the development of IT and the internet. China’s answer to Twitter – Weibo – has announced that the number of users increased 33% in Q2 of 2016, to over 282 million people. The company’s revenue rose 36% to 147 million USD (main source: advertising revenue). These are figures that Twitter would love to start seeing again.
Trading of the EURUSD on Tuesday saw a fall in relation to the price on Wednesday. The dollar dropped 0.2% of its value against the euro, with a euro on Wednesday morning going for 1.115 USD. The euro is attempting to correct upwards after a few days of falling weakly. Today will see US data on commercial oil reserves for the week and this is set to be an important driver for the oil market.