CRUDE OIL PRICES COULD RISE AFTER COVID-19 JUMP, SAYS BIDEN

Posted 10 July, 2020

Crude Oil Prices, Singapore Elections, Coronavirus, Wall Street Stocks - OBJECTS

  • After Florida's medical performance showed an alarming trend, Wall Street stocks closed at lower prices
  • Risk level aggravated by comments by Democratic presidential candidate Joe Biden
  • Crude oil prices fell the most during the day. What is happening now?

Wall Street's actions were suppressed, first by disturbing medical figures leaving Florida, and then by the atypical populist Democratic presidential candidate in the comments to Joe Biden. The Dow Jones and S & P 500 indices closed 1.38 and 0.57 lower, respectively, while the technologically inclined Nasdaq index closed just over 0.53 percent of its hair.

The strength of the latter underlines the sustainability of technology stocks during the Covid-19 pandemic. Their impressive growth appears to be largely driven by home-based policies, which in turn led to an increase in demand for Internet services. The largest losses for the Dow Jones Industrial Average were related to the energy component, in particular to the oil, gas and fuel sectors.

A significant drop in the S & P 500 occurred after Florida reported 120 deaths associated with Covid. There were 48 in the previous report. The number of hospital admissions to new hospitals also showed a record of 409, much more than in the previous report 333. These alarming medical indicators reinforced the growing fear that another influx of coronavirus cases could force officials to re-introduce or expand blocking measures growth.

Crude oil as a cyclical product has been hit hard by these concerns and may have contributed to the depreciation of the Norwegian krone. It is probably no coincidence that the oil-related NOK was the most affected G10 currency. On the other hand, bad moods led to increased demand for asylum, treasury bills and the US dollar. Anti-crisis Japanese yen and Swiss franc also rose.

This dynamics was further strengthened by the river. Biden comments in his report on economic policy in Pennsylvania. He said it was time to end the "era of stock capitalism," adding that "the bankers and CEOs of Wall Street did not build America." Such populist comments may be more frequent ahead of the November elections.

Friday’s Asia Pacific Trading Session

With a relatively small dataset, traders are likely to focus on key macroeconomic topics, such as Covid-19 medical indicators. Expanding risk dynamics in Wall Street trading could damage crude oil prices over the coming session along with commodity currencies such as AUD and NZD. Asylum-linked US dollar and anti-risk JPY and CHF may increase their profits along with treasury bills.

Crude Oil Analysis

Crude oil prices closed more than 2.40 percent on Thursday, the worst one-day decline since June 24. Brent is trading sideways after the March climb in the gold parallel channel. The apparent lack of focus means great uncertainty, not only in the technical, but also in the basic sense. Given current circumstances, crude oil prices may continue to decline at the upcoming session.

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