Oil keeps dropping

By Tomasz Wisniewski|

Published: December 09 2022, 09:58 GMT+0

Oil keeps dropping

The last trading day of a rather quiet week brings us a reversal of the mood present in the first half of the week. Currently, we are coming back to the weaker USD and rising indices. The pack is led by Hang Seng again (yesterday +3,3%) who is currently rising more than 1.5%. Traders are thrilled about news of China easing the Covid restrictions.

A few hours ago, we received important data from China, where the Consumer inflation was the same as expectations at the 1.6%, while the Producer Price Index turned out better than estimated (-1.3% vs -1.5%). China is not the only country showing its PPI data today – the US will join in a bit later as well. In case of the United States, 0.2% is expected.

As mentioned in the first paragraph, USD is currently losing and is the weakest currency among majors. Safe haven currencies like CHF and JPY are back in action, with both of them trading higher than yesterday.

On the commodities front, we observe rises in metals and drops in the energy sector. Yesterday, Brent dropped more than 1.3%, while WTI went 0.7% lower. Thursday was the fifth consecutive bearish day for oil, which is not really a common thing. You can see that the sentiment on the black gold is really negative.

On the other hand, yesterday’s session was great for palladium (+4.1%) and silver (+1.4%). Silver is continuing the positive sentiment today as well, already climbing up almost 1%. Gold is slightly less active but traders are currently settling above the psychological level of 1800 USD/oz.