Interesting Week | 22 February 2019

Interesting Week


#SP500:


U.S. central bank announced it is putting plans for further rate hikes on hold and pledged to be "patient", citing muted inflation and rising risks to global economic growth. U.S. economic outlook was strong. As long as there are no signs the economy is overheating. This is a positive signal for the US stock market! Strong macroeconomic statistics will support the stock market. Treasury bond yields are declining, which is positive for the stock market. Bond yields and share prices move in opposite directions. I expect the business capitalization of the largest American corporations to grow.


Trading recommendation: Buy 2767 and take profit 2805.


Interesting Week


#BRENT:


Fresh US sanctions against Venezuela could reduce from 0.5 to 1 percent of the global supply of black gold. Sanctions will sharply limit oil transactions between Venezuela and other countries and are similar to those that were introduced against Iran last year. That is a positive signal for oil market! According to oilfield service company Baker Hughes number of oil rigs in Northern America is decreasing; reduction of capital costs by energy companies is to blame. For this reason, we won't see high increase is oil output in North America in the first quarter of 2019. That is a positive signal for oil market!


Trading recommendation: Buy 65.90 and take profit 67.15.


Interesting Week


#Visa


Visa beat Wall Street estimates for quarterly profit, as the payments network processed more transactions on the back of higher consumer spending during the holiday season. Company said that its service revenue for the quarter was 9% higher than it was during the year-ago quarter, reaching $2.3 billion. Payments volume at Visa is improving as it is heavily marketing and trying to bolster revenue at its Visa Direct platform, which enables real-time funds delivery directly to financial accounts using card credentials. This is a positive signal for the stock!


Trading recommendation: Buy 144.01 and take profit 146.12.

 

David Johnson
Analyst of «FreshForex» company
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