The price on OIL: decrease after the decision of Saudi Arabia

Dear traders, let us review the economic events event of the past week. The US markets ended Monday’s session marginally lower. The stock indices were dragged down by falling energy stocks. Investors are getting rid of energy and materials sector stocks amid falling oil prices. Oil prices fell on Monday on weak global demand, stronger dollar and fears Saudi Arabia could announce another price cut after last month it slashed prices.
The unexpected decision by the Saudi Arabia on Monday to cut oil prices for US resulted in a further slide in oil prices on Tuesday. The S&P 500 finished 5.71 points, or 0.3%, lower at 2021.10 . European stock markets slumped in late trading on Tuesday. The cut of growth forecast for the euro zone by the European Commission did not help to bolster investment optimism.
The ADP Non-Farm Employment Change in October was released on Wednesday in the US. The increased number of jobs appeared to be at the highest level since June and exceeded the forecasts. S&P 500 and Dow Jones Industrial hit new historical highs. The euro is rising ahead of the next ECB meeting and its President Mario Draghi speaking at the press conference. European markets upped less than the US markets. Grain futures, precious metals, coffee and cocoa continued to fall as the US dollar strengthened and the Chinese economy showed signs of recession.

World markets continued to rise on Thursday. S&P 500 and Dow Jones Industrial hit new historical highs once again. The US dollar index kept rising. Stoxx Europe 600 updated the 5-week high. Investors deem that part of the additional liquidity from the euro issuing may end up on the stock market.

The US dollar continued to fall on Friday after US employment data were released. The numbers came out below the forecasts. As reported by the US Department of Labor, total nonfarm payroll employment rose by 214,000 in October. The US dollar slipped against the yen. The Bank of Japan Governor said that the economy benefits from monetary policy easing, and the monetary stimulation produces the expected effect.

One of the main events of this week is the release of Unemployment Claims in the US. The number for Unemployment Claims is expected to grow at least 3%. On the whole investor sentiment confirms the slowdown in the American economy recovery. If the actual number comes out higher than the forecast, we should expect the US dollar depreciation against other liquid currencies, as well as a temporary slowdown in growth of major US stock indexes. This was all for the week, see you next week. See also: