Weekly market overview for 29.10 – 02.11.18

We would like to bring to your attention another weekly overview of the world’s markets for the last week. The general trend of the most assets remains “bearish” due to the escalation of the geopolitical conflicts and uncertainties. But investors still have an opportunity to earn. For instance, the following indexes have shown positive weekly dynamics.

1. Oil market

During the previous week, oil quotes have continued their decline, having lost around 6.5% by the end of the week, which has been the largest reduction since February this year. At the close of Friday trading, the price for January futures of the Brent oil was USD 72.63 – 72.83 per one barrel. The highest decline was recorded on 31.10 and on 01.11, which is related to the increase of the oil production by OPEC and Russia, as well as to the uncertainty about the impact of the US sanctions against Iran.

Current week forecast

This week the attention of traders will be riveted to the global oil reserves: the data published by the US Department of Energy and the data on the number of drilling rigs. Investors worry that the US sanctions against Iran will not push the price up, because South Korea, India, Japan and five more countries-importers of the Iran oil will be compensates about this oil supplies. Investors’ concerns regarding the slowdown in the global economic growth along with the increase of the oil production volumes will keep quotes in the range of USD 70-73 per one barrel.

2. Stock market

Weekly charts of the US stock market are optimistic. The same is true of the Asian markets that, in the short-run managed to reverse their descending trend.

Dow Jones

At the end of the week, this Industrial Average Index demonstrated some small growth. If, at the beginning of the week, it was at the level of 24 818.88, then it closed above 25 250. Still, we cannot talk about any ascending trend at the moment, because its monthly chart show some downfall.

S&P 500

This index practically follows the Dow Jones Index. Despite the small drawdown in the beginning of the week, S&P 500 reached some positive tendency at the end of the week.

DAX

During the last week, this European Company Index has some small growth, reversing its monthly descending trend. In general, its monthly behavior is negative.

SSE Composite

This Chinese Company Index has demonstrated an ascending trend, nearly approaching to the level of early October.

Current week forecast

So far, it is hard to predict the reaction of the US stock market. The Congressional elections will definitely have the most important influence on it. The labor market report of NFP, which will be published on Friday, may also have some indirect influence on the share price.

3. Cryptocurrency market

The cryptocurrency market continues to demonstrate flat in the narrow capitalization range that is 200-210 billion US dollars. The share in the total BTC capitalization remains nearly unchanged – 53-54%. It is exactly Bitcoin that defines the main temp for the quotes of other cryptocurrencies. The trade week has begun with the small BTC drawdown, followed by other coins. Almost during the whole week ВТС was being traded around USD 6 350, and recovered its lost position only by the 2nd of November. Analysts didn’t see any fundamental reasons for this drawdown, so we can conclude that it most likely was based on the transactions made by the large players of the market.

Current week forecast

Most likely the market will stay calm this week. Investors still believe in long-term benefits of cryptocurrencies, so they are in no hurry to get rid of this asset. At the same time, they don’t have any plans to increase their transactions volumes. The market needs a strong fundamental factor to start moving up or down, but such factor will hardly arise by the end of November.