Japanese factories increased output | 05 March 2021

#WTI:

The enlarged OPEC+ alliance of oil producers, banding the Saudi-led Organization of Petroleum Exporting Countries with allies steered by Russia, is to meet Thursday to set output quotas for April. The previous meeting had ended in a face-saving compromise which allowed Russia and Kazakhstan to raise their output, while Saudi Arabia offset the net increase in world supply with a temporary 1 million barrel a day cut of its own. The kingdom pledged to make these extra curbs only in February and March, but some see signs that could change as the negotiations get underway. Riyadh was publicly urging fellow members to be “extremely cautious,” despite crude prices rebounding to a one-year high. Moscow, on the other hand, is indicating that it still wants to proceed with a supply increase. This is a negative signal for the oil market.

Trading recommendation: sell 62.90 and take profit 61.80.

#NIKKEI:

Japanese factories increased output in January for the first time in three months, signaling the country’s economic recovery is continuing. Industrial production rose 4.2% from the previous month, the trade ministry reported. Production has been helped by a pickup in overseas demand, particularly from China where Japan’s shipments rose by the most since 2010 last month. The Bank of Japan will closely examine the latest data to gauge the impact of the emergency on the economy and the strength of output as exports continue to recover.

Trading recommendation: Buy 29500 and take profit 29801.

XAUUSD:

Gold posted its worst monthly loss since 2016. Gold has suffered a series of setbacks since its futures hit record highs in August. The decline has accelerated from November, after vaccine breakthroughs for the Covid-19 often raised expectations for economic recovery from the pandemic. The yield on US 10-year government bonds has renewed its annual high. The 10-year Treasury note, the benchmark for U.S. bonds, surged Thursday to above 1.6%, a level not seen since February 2020, before the outbreak of the pandemic. Now this indicator is 1.41%, which is higher than inflation in the United States. This is a negative signal for gold.

Trading recommendation: sell 1761 and take profit 1728.