Optimism sweeps global markets on weekly opening
Oil prices have risen at the start of this week’s trading to break $41 in early trading. This is against the backdrop of the recovery of the Chinese economy, a strong supporter of oil demand in the coming period, and US President-elect Joe Biden’s advisers confirmed a new approach to pandemic management Covid-19 virus.
Oil processing in China rebounded in October to new record levels, while consumer spending and industrial production have rebounded faster than expected. Indications that US would target domestic measures instead of nationwide lockdowns to tackle the spread of the virus have also helped.
Economic data released this morning showed t fixed investment is growing at the fastest pace since the outbreak of the pandemic by - 1.8% - while industrial production has increased by 6.9%, and retail sales by 4.3%.
Gold was able to touch its highest levels for a week this morning on the decline of US dollar, with the continued increase in Covid cases worldwide and the likely ongoing expansionary policies around the world contributing to gold’s gains.
Gold rose in spot transactions to levels of $1898 an ounce, while gold futures contracts settled at levels of $1886.70 an ounce.
Today, global markets are anticipating several important economic events, including statements fromRBA Governor Philip Lowe and ECB Governor Christine Lagarde.
European stocks began weekly trading by rising to approach their highest levels in nine months, supported by the wider state of optimism in the markets. The Eurostoxx 600 index rose 0.7%.
Shares in Vodafone Group, the world's second largest mobile operator, rose 2.6% after it said it was increasingly confident of its full-year performance after a "resilient" first half, despite the underlying momentum masked by the impact of Covid-19.