Market Snapshot – Markets Recover as Risks Recede

Markets and Oil Prices Move Higher

The stock markets and oil prices rebounded during the course of the day today as the risks began to return to the market. This is the same pattern that we have been seeing over the past couple of weeks where global risks rise on account of threats and tension in the Korean region and this pushes up the gold prices and leads to a sell off in the stock markets. Then, the following days, the markets recover as the risks recede in a slow and steady manner and this is what we have seen this week as well, so far. The DAX is up by more than 0.5% so far but as we have been mentioning in many of our forecasts, this is all part of an overall consolidation. Oil prices have also moved higher on account of reopening of the refineries in the hurricane hit region which is again something that we had been expecting over the last week or so.

Focus on Fed Members

As for news today, we do not have any major news from the US for today, but we have speeches from several Fed members which is likely to bring in a lot of volatility in the markets in the short term. The market will be watching to see what they think of the US economy and whether it is on the right path to recovery which would help the Fed to hike rates sooner. If any such hint comes along, then it could help in the recovery of the dollar.