MUSCAT: A crash in share prices, oil prices surging all-time high in the past ten months and shareholders feeling the pinch are all currently on top of the corporate table, prompting experts to comment on the same.
A Saxo Bank report released recently suggests that investors were not impressed by the iPhone 15 and Apple Watch Series 9 reveal, causing Apple's shares to drop 1.8 per cent and affecting the Nasdaq 100, which fell 1.1 per cent.
Joining the bandwagon, Adobe's stock too declined by 4 per cent and Oracle shares plummeted 13.5 per cent on weak cloud sales. The S&P500 shed 0.6 per cent.
Meanwhile, Opec's forecast of a tight oil market led to crude oil prices surging to 10-month highs. Opec is anticipating a significant 3.3mb/d supply deficit in the last quarter of 2023, one of the largest in over a decade. CAD outperformed in the G-10, while EUR made gains following an ECB leak about potential inflation forecast increases. The focus has then been shifted on the US CPI report.
"Reuters reported that according to an unnamed source, the ECB’s new 2024 inflation projection to be above 3 per cent vs 3 per cent in June, firming case for interest rate hike. ECB also to cut 2023 and 2024 economic growth projections broadly in line with market expectations," said the Saxo report.
Vijay Valecha, Chief Investment Officer, Century Financial, in his comments on crude oil, gold updates says that global oil markets are expected to tighten further in the second half of 2023.
"Despite the rise in crude production, the demand for refined products remains subdued. According to the Energy Information Administration, crude consumption is expected to surpass global supplies by 230,000 barrels daily in Q4 2023," Vijay adds.
Further, the OPEC data forecasts a 3.3 million barrel shortfall per day next quarter as Saudi extends production cuts — marking the tightest supply in a decade. As a result, oil is seeing a golden cross on the technical charts for the first time since 2020.
On the technical front, the short-term trend for gold prices is currently experiencing a decline, with the nearest target being the support level at $1,906 pivot level. In the event that this level is breached to the downside, the target becomes the support at the Super-trend at $1,896.05. New resistance levels have emerged namely the resistance at $1,918.2 – $1,920.09 which corresponds to 3 major SMAs, 20-, 50-, and 200-Day, if this resistance is broken, resistance could be seen at $1,930 level corresponding to 100 EMA level.
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