The bullish rally in the stock markets! | 09 July 2021

#WTI:

Around 2 billion doses have now been administered globally, and millions more are being given every day. Oil demand expected to grow by 6 mb/d to around 96.5 mb/d on average for the year, an increase of 6.6%. This is a welcome turn of events from the somber situation in 2020. In the US, liquids production is expected to dip slightly, to around 17.6 mb/d, despite the improving market conditions and demand prospects. Both conventional and tight crude productions are forecast to decline in the US. OECD commercial oil inventories have fallen by 250 mb from their peak of 3.2 billion barrels in the middle of 2020. This is a positive signal for the oil market!

Trading recommendation: Buy 73.94 and take profit 75.70.

#SP500:

The Labor Department's employment report showed nonfarm payrolls increased by 850,000 jobs last month, but the total is 6.76 million below its peak in February 2020. The better-than-expected data was a tentative sign that a labor shortage overhanging the U.S. economy was starting to ease, but was not enough to force the Fed to raise rates. Traders have feared a stronger-than-expected recovery and the prospect of surging inflation that could force the Fed to pare its support and raise rates, hurting technology shares whose growth and cash flow is farther in the future. The Federal Reserve is continuing to print money and increasing the dollar liquidity surplus. This is a positive signal for the U.S. stock market!

Trading recommendation: Buy 4326 and take profit 4375.

#DAX30:

In June Eurosystem projections, the 2021 and 2022 GDP growth forecasts for the euro area have been upgraded by between 0.5 and 0.6 percentage points compared with March projections. These improved economic prospects reflect the swifter progress of the vaccination campaign in the second quarter of this year, substantial additional fiscal support – partly funded by the Next Generation EU package – and the more favorable outlook for global demand. The ECB has published fresh statistics on the change in assets on its balance sheet. The figure rose by €140 billion over the last week, against €35.6 billion a week earlier. The central bank sharply increases the purchase of assets, which is positive for the German stock market!

Trading recommendation: buy 15550 and take profit 15802.