Saudi Arabia declares a price war | 13 марта 2020

#WTI:

There's a disorderly rout in the oil market as Saudi Arabia declares a price war on Russia and the U.S. after being snubbed at Friday's OPEC+ meeting. Kingdom plans to ramp up output over the next month to well over 10 million barrels a day, while the state oil company has already slashed official selling prices for its flaghip Arab Light blend to $10.25 below the global benchmark Brent. The move marks the end of four years of cooperation between OPEC and Russia and the start of a new free-for-all – not least at the expense of U.S. producers, many of whom are highly-indebted. This is a negative signal for the oil market. Desk Federal Reserve Bank of New York will increase the amount offered in the two-week term repo operations on Tuesday, March 10, 2020 and Thursday, March 12, 2020 from at least $20 billion to at least $45 billion. This is a positive signal!

Trading recommendation: range Buy 33.60 and take profit 35.50

XAUUSD:

We are expecting the development of a downward trend in the precious metals market. Investors are now expecting the Federal Reserve to again cut interest rates next week after an emergency reduction on March 3, putting the yield on benchmark 10-year U.S. Treasury on course for its biggest one-day fall in almost a decade. Investors are expected a 10 basis-point cut to the deposit rate European Central Bank and an increase in monthly bond purchases of between 10 and 20 billion euros. This is a negative signal for gold!

Trading recommendation: Sell 1670 and take profit 1650.

#SP500:

We are expecting a bullish rally in the U.S. stock market this week. The Open Market Trading Desk at the Federal Reserve Bank of New York will increase the amount offered in daily overnight repo operations from at least $100 billion to at least $150 billion. In addition, the Desk will increase the amount offered in the two-week term repo operations on Tuesday, March 10, 2020 and Thursday, March 12, 2020 from at least $20 billion to at least $45 billion. This is a positive signal for stock markets!

Trading recommendation: Buy 2840 and take profit 2893