Equity funds secured biggest inflow in two months | 27 August 2021

#WTI:

The Federal Reserve is continuing to print money and increasing the dollar liquidity surplus. The Fed has published the fresh statistics illustrated the change in assets on the balance sheet. Over the past week, the figure rose by $85.4 billion, against $22 billion a week earlier. This is a negative signal for the dollar. This is a positive signal for the oil market! The important event for the oil market will be the meeting of the Organisation of Petroleum Exporting Countries and their allies, a group known as OPEC+. The group is set to meet on 1 September, and whilst their output policy is set until the end of the year, there is always the potential for a change if they feel that this is necessary.

Trading recommendation: Buy 62.20 and take profit 64.50.

#SP500:

U.S. equity funds secured their biggest inflow in nearly two months in the week to Aug. 20, boosted by optimism over corporate profits and a rebound in the U.S. economy. U.S. equity funds lured inflows of $13.28 billion in the week, compared with just $2.4 billion in the previous week. U.S. value funds attracted $3.88 billion, the biggest in five months, while U.S. growth funds faced outflows worth $2.42 billion. U.S. large-cap funds took the lion's share of inflows, obtaining $7.74 billion, while mid-cap and small-cap funds witnessed outflows. This is a positive signal for the U.S. stock market!

Trading recommendation: Buy 4439 and take profit 4487.

XAUUSD:

The spread of the delta variant of the Covid-19 virus globally continues to cloud the outlook for world economic growth. Japan has extended its emergency lockdown, as have Australia and New Zealand, while cases are also on the rise in countries such as South Korea, Malaysia, Philippines, Vietnam and Thailand, as well as China, crucially. Those countries tend to have relatively low vaccination levels, but cases are also on the rise in the United States, prompting the country’s authorities to extend earlier Friday the closure of its land borders with Canada and Mexico to non-essential travel such as tourism through Sept. 21. This is a positive factor for gold, since the precious metal is a protective asset.

Trading recommendation: buy 1776.50 and take profit 1799.35.