While U.S. crude oil production continues to recover following Hurricane Laura, the numbers show that refineries further reduced run rates over the last week. Traders were starting to book tankers again to store crude oil and diesel, amid a stalled economic recovery as the COVID-19 pandemic continues unabated. Onshore storage remains near capacity as supplies continue to outpace demand, so the use of so-called floating storage is back in vogue as cheap financing costs and the spread between contracts for delivery now and later months makes it favorable for traders to hold oil for later sale.
Trading recommendation: Sell 38.00 and take profit 37.00.
The US Federal Reserve has published fresh data on changes in the M2 money supply. The indicator has renewed its all-time high and now stands at $ 18.46 trillion. This is a positive signal for the stock market. The Senate failed to pass a bill that would have provided around $300 billion in new coronavirus aid. Time is running out ahead of the congressional and presidential elections for the two main parties to find some form of compromise. This is negative news for traders.
Trading recommendation: range 3360 -3444.
ECB will continue purchases under the pandemic emergency purchase programme with a total envelope of €1,350 billion. These purchases contribute to easing the overall monetary policy stance, thereby helping to offset the downward impact of the pandemic on the projected path of inflation. ECB will conduct net asset purchases under the PEPP until at least the end of June 2021 and, in any case, until the Governing Council judges that the COVID-19 crisis phase is over. Central bank will reinvest the principal payments from maturing securities purchased under the PEPP until at least the end of 2022. This is a positive signal for the German stock market!
Trading recommendation: Buy 13250 and take profit 13444.