Bullish rally in the oil market! | 18 June 2021

#WTI:

OPEC and its allies maintained strong compliance with agreed oil output targets in May, when the first part of a gradual production increase took effect. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, complied with 115% of agreed output curbs in May, the source said. OPEC said this week the April figure was 114%. OPEC and its allies expect oil inventories to fall further in the coming months, OPEC's secretary general said, suggesting efforts by the producers to support the market are succeeding. The group cut output by a record 9.7 million bpd last year as demand collapsed when the COVID-19 pandemic first struck. As of July, the curbs still in place will stand at 5.8 million bpd.

Trading recommendation: Buy 70.20 and take profit 71.80.

#SP500:

The FED balance has updated its historical maximum once again! Balance growth has historically had a positive effect on the US stock market, since the Central Bank, through the purchase of assets, increases the surplus of dollar liquidity in the financial system. High inflation and low interest rates in the United States are providing good support to the stock market. Inflation data has alarmed many investors, but for the moment the reaction is stocks are still preferable to bonds in an inflationary environment. Yields on 10-year U.S. Treasury notes slid 0.5 basis points to 1.45% after earlier declines that positioned the benchmark for its biggest weekly decline in a year.

Trading recommendation: Buy 4240 and take profit 4277.

#CAC40:

ECB will continue to conduct net asset purchases under the pandemic emergency purchase programme with a total envelope of €1,850 billion until at least the end of March 2022 and, in any case, until the Governing Council judges that the COVID-19 crisis phase is over. Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council expects net purchases under the PEPP over the coming quarter to continue to be conducted at a significantly higher pace than during the first months of the year. This is a positive signal for the French stock market.

Trading recommendation: buy 6588 and take profit 6655.