Saturday, February 11, 2017

The plan of the Trump and rise of the oil takes Wall Street to new record – Jornal de Negócios – Portugal

The industrial index Dow Jones has opened to add 0.25% to 20.223,20 points, that is a maximum of always – being the third day in a row to score records.

the Standard & Poor’s 500 continues to set new record levels for a second session followed, advancing 0.20% to 2.312,41 points.

The index of technological Nasdaq Composite goes along with the trend, gaining 0.26 per cent to 5.730,07 points – the highest value always.

The help to the positive movement were the statements of president Donald Trump, who yesterday promised to brief a tax reform for companies, which ensures that it will be “phenomenal”.

According to Binky Chadha, strategist at Deutsche Bank, the escalation of the squares of the north-american that has been observed since the victory for Trump in the presidential elections of the past November 8 “is only at the beginning”.

on A note of “research”, which was released by Bloomberg, Chadha says she is convinced that the “rally” scholar is simply a reflection of the removal of the element of uncertainty, and it is estimated that the recent gains are to continue, as corporate profits and the economy are improving.

at A time when more than half of the companies listed in the S&P 500 have already submitted their accounts, the balance is positive: about 75% have exceeded estimates for earnings and close to 50% reported sales above expectations, according to data compiled by Bloomberg.

as in the past, also the appreciation of the price of oil is contributing to this rise in of the exchanges of the other side of the Atlantic, given that is driving the securities linked to the energy.

After you have strengthened with the announcement yesterday of an unexpected drop of the reserves of the north-american gas station, today the “black gold” continues on a high, excited by the fact that the Organization of the Petroleum Exporting Countries (OPEC) to be to fulfill almost completely (90%) to cut output as promised.

On September 28, in Algiers, the members of the cartel – against general expectations – have reached agreement to limit production, something that has not happened eight years ago. The raw material valued immediately in the main international markets. But the optimism gave way to caution and investors wanted more evidence, since this reduction was not quantified.

And then, to November 30, in new meeting of the OPEC – this time in Vienna – it was decided that the production of crude oil would be cut by 1.2 million barrels per day from January 2017. The implementation of the commitment made on 28 September left the markets euphoric, with the raw material to fire more than 8% in London and New York, to levels not seen since February.

right at the end-of-the-week following, 11 producers from outside the cartel have taken the same objective – being the reduction of these estimated 600,000 barrels per day (with Russia taking half of that goal).

however, despite remaining bullish, the tempers calmed down, the fears that the OPEC once again did not comply with what is proposed. Now, with the first data to come out, the cartel proved to be serious in their commitment. And although the International Energy Agency (IEA) have warned of the possibility of these cuts could be “overshadowed” by increases in production in other countries such as Brazil and the USA, the market is reacting with “joy” and the optimism of the investors is to sustain the prices.


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