How to start the week: analytics and forecasts — 21.09.2020

 


Pessimism has returned to the oil market as the global economy remains uncertain.

 

Economic calendar

14:00 UTC

US Federal Reserve Chairman Jerome Powell will deliver a speech. Traditionally, such events can cause an increase in asset volatility.

Assets for trading: S&P 500, Gold, EUR/USD

 

Must know

The US Federal Reserve has promised to keep interest rates at the current level for a long time. Once again, the regulator noted that the main indicators of the economic situation in the country are inflation, as well as employment numbers.


Over the past week, oil quotes grew, as traders were waiting for positive news from the meeting of the OPEC+ monitoring committee. As a result, the body recommended oil workers to be prepared for an additional reduction in the production of raw materials. In addition, Abdulaziz Bin Salman, the Minister of Energy of Saudi Arabia has threatened the countries violating the agreement, which exceed the limits for the extraction of raw materials.


The Bank of England at the last meeting of the monetary policy committee decided to maintain the current rate of 0.1%. At the same time, the bank is actively exploring the possibility of introducing negative rates and the conditions that would be required for such action.


The situation around TikTok is becoming more and more incomprehensible. After ByteDance turned down Microsoft’s deal, Oracle came to the forefront with a desire to buy the social network. But even this candidate is unlikely to corral the Chinese company, since ByteDance is now talking about a possible IPO in the United States. Only the US government has decided to block TikTok from September 20.


At the beginning of last week, US Treasury Secretary Stephen Mnuchin said that work on a new package of economic stimulus continues. Representatives of both parties are also optimistic about the possibility of reaching an agreement soon, which could affect the behavior of the stock market.

 

A fundamental view

Apple

Immediately two American investment banks Jefferies and Needham raised the target value of Apple shares to $135 and $140. Recommendations were also given for the purchase of the company’s securities.

Brent

Although the past week passed positively for the oil market, nevertheless the growth impulse faded away on Friday. The focus will be on news from Libya, where, according to general Khalifa Haftar, oil exports may resume.

Nvidia

News of Nvidia’s $40 billion takeover of Britain’s Arm has rocked the market. If the deal goes through, Nvidia is predicting a new round of development as the company can gain a larger share of the GPU market. However, experts predict this deal will be difficult due to the need to obtain approval from several regulatory authorities in different countries, including China.

 


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