New Middle East confrontation | 04 December 2020

#DAX30:

The ECB has published fresh statistics on the change in assets on the balance sheet. Assets increased by €34.33 billion over the past week, against €36.57 billion a week earlier. For two weeks in a row, assets have increased by more than €30 billion. Finally, growing excess liquidity was increasingly putting downward pressure on the term money market and commercial paper rates. Since early October 2020, the three-month EURIBOR had traded below the deposit facility rate, and corporates could issue three-month commercial paper at rates close to the deposit facility rate, providing an important liquidity backstop for corporates, with rates falling even faster at longer tenors. This is a positive signal for the German stock market!

Trading recommendation: Buy 13115 and take profit 13411.

#SP500:

The Federal Reserve has released a fresh portion of its monetary multiples statistics. Surplus reserves of American commercial banks have increased by $38.8 billion, allowing bankers to continue speculating in the stock market. Retailers opened their doors to Black Friday shoppers, with social distancing practices and other measures put in place to mitigate infection risks, while offering steep discounts. Black Friday has been somewhat tarnished - traffic is down due to the pandemic - but the good news is e-commerce sales have reached a new record. This is a positive signal for the stock market.

Trading recommendation: Buy 3601 and take profit 3666.

#WTI:

Iran's supreme leader promised to retaliate for the killing of the Islamic Republic's top nuclear scientist, who the West and Israel believed was the architect of a secret Iranian programme to make weapons. Ayatollah Ali Khamenei, Iran's top authority who says Tehran has never sought nuclear arms, also pledged in his statement on Twitter to continue the work of Mohsen Fakhrizadeh, who died on Friday after gunman ambushed him in his car near Tehran. The killing, which Iran's president was swift to blame on Israel, threatens to spark a new Middle East confrontation. This is a positive signal for oil prices!

Trading recommendation: Buy 44.00 and take profit 45.50.