Initiating a Voluntary Reduction in Oil Production

Market News Summary

Hedge funds that had bet against US technology stocks lost approximately $18 billion as the sector’s large gains led to a sharp recovery in stocks.

Crispin Odey and James Hanbury are among the most prominent funds that have incurred losses as a result of the Nasdaq Composite Index rising by about 16% this year.

On Friday, European stock indices rose at the close of trading as investors digested business and economic data released by companies. Preliminary figures showed that the eurozone economy grew by 0.1% in the first quarter of this year, despite the GDP of Germany remaining stable during this period. However, the growth rate was below analysts’ expectations of 0.2%

The Stoxx 600 index saw gains led by stocks in the oil and natural gas sector, which rose by 1.9%, while shares in the banking sector fell by 1.4% and those in the utilities sector dropped by 0.3%.

Dollar index (USDX)

The dollar index rebounded 0.45% to 101.710, recovering from its lowest level in almost two weeks. However, the greenback remained on track for a monthly loss of just under 1% after a 2.3% drop in March. Traders had concerns about the soundness of the US banking system and the prospects for the Fed to end its monetary tightening policy, as the country’s economic growth faltered.

Pivot Point: 101.50

Spot Gold (XAUUSD)

Gold prices increased during Friday’s trading session due to a drop in returns and renewed concerns about banking instability in the US.

Gold prices increased during Friday’s trading session due to a drop in returns and renewed concerns about banking instability in the US. Upon settlement, US gold contracts rose by about ten cents to close at $1999.1 per ounce, recording a weekly gain of 0.43%. In April, gold prices saw a monthly gain of 0.65%, marking the fifth monthly gain in the past six months.

Pivot Point: 1986

Dow Jones Index (DJ30ft – US30)

Strong corporate earnings outweighed recession fears, leading to a collective rise in US indices during Friday’s trading session.

In March, US consumer spending remained unchanged, while underlying inflation pressures remained strong according to data, which reinforced expectations that the Federal Reserve would raise interest rates by 25 basis points the following week.

The Dow Jones index climbed 0.8%, or approximately 272 points, reaching its highest closing level in two and a half months. The index also recorded a monthly increase of about 2.5% in April, marking gains for the second consecutive month.

Pivot Point: 34060

US Crude (USOUSD)

As of May 1, many countries participating in the “OPEC+” agreement have initiated a voluntary reduction in oil production. This production cut will continue until the end of 2023, resulting in a total decrease of 1.66 million barrels per day.

West Texas Intermediate crude futures saw a slight decline of 0.07%, dropping to $76.58 per barrel, while Brent crude also experienced a decrease.

The decline can be attributed to disappointing Chinese data, as the Chinese Industrial Purchasing Managers’ Index revealed a contraction in the economy with a reading of 49.2, while the services index fell to 56.4, down from the previous reading of 58.2. The composite index also fell to 54.4, compared to the previous reading of 57.0.

Pivot Point: 75.80