Market Insights 030423
Investors will be paying attention to manufacturing PMI figures today. This morning, the oil market sent turbulences during the Asian trading session when the news broke that the OPEC+ grouping opted in favour of cutting down oil production to 1.15 million barrels per day citing a precautionary measure to ensure market stability as their projections indicate a drop in oil demand.?This news is expected to create aftershocks as the US had expressed concern over the decision of oil producing nations to cut oil output to 2 million barrels per day back in November 2022. The WTI crude was trading at USD 79.02 a barrel and the Brent futures was trading at USD 83.53 a barrel at the time of writing, increasing by 4.43% and 4.56% respectively. Other market data expected today include manufacturing employment index, manufacturing paid prices as well as new orders index and construction spending. The 3 and 6-months bill auction will also be taking place in the course of the day. The US dollar index is currently trading at 102.92 against similar peers.?
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Last week, Eurozone inflation figure dropped to 6.9% on an annualised basis, from previously 8.5%, as data revealed that the pressure on energy costs had eased. Vice President Luis de Guindos argued in favour of the ECB’s objective of price stability, in the context of a central bank’s event. He stated that the resilience of the euro area banking sector supports the ECB’s fight against high inflation but the ECB’s monetary policy would also be determined by market conditions, for instance, financial stability of the euro areas. ECB board member Elizabeth McCaul will be discoursing about crypto-assets and regulation today.?Manufacturing PMI data shall be published for the Eurozone, France Italy, Germany and Spain. The fibre was trading 1.0814 at the time of writing ahead the European open which should be adversely impacted by the OPEC+ decision.?
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