Markets definitely took Trumps win with stride. The Dow Jones industrial average soared to more than 1000 points above the level it was at the day before the election. The NASDAQ and S&P also advanced after retreating initially. It seems investors like a CEO – however controversial he might be – in the White House. There is a sense that President Elect Trump will run the country more from a business perspective, unlike any president before him.
Nevertheless it is too early to celebrate. The Dow did reach a new record high yesterday, but the markets remain volatile and President Trump remains a riddle in many aspects. His proposed fiscal expansion could generate drag elsewhere, especially if it comes with a tax cut. It could well increase the already precarious debt situation that the US is facing. read more…
As quickly as the OPEC supply cut advantages evaporated, so did the prospects for the Canadian economy. Yesterday, the Bank of Canada decided to keep its rates unchanged at 0.5%. The report also shows that Canadian companies have failed to increase exports. Record household debt is also weighing down on the general economic situation, and job figures show that 90% of new jobs created are part-time jobs.
Can Raw Materials Rescue Canada?
The Canadian economy is not as diversified as it should be. It depends on the US market for about ¾ of its exports, and raw materials are still its main export. Manufactures are constantly declining despite the favorable exchange rates. Canada’s only hope given Trump’s victory, is for the Keystone XL pipeline projects to go ahead as planned, in order to reduce the costs of getting Canadian oil to markets. read more…
The price of oil has been climbing quite quickly since OPEC announced that its members reached a deal last week to cut oil production. Russia has joined OPEC and it will cut production by 300,000 barrels per day as well. Nevertheless, as soon as WTI prices climbed above the $52 USD mark, they started to decline. WTI lost 1.2% of its value yesterday. This shows that the OPEC deal will not boost oil prices as much as its members need to balance their budgets and pay some of their debt down.
Why didn’t the Price of Oil Reach $60 USD After the Deal?
OPEC deal or not, no one can put the shale revolution genie back in the bottle. It is clear that even with the deal and with cooperation from important non-OPEC members such as Russia, oil prices will stay way below their 2014 prices. North American capacity doesn’t stop at shale either. read more…
Experts have been following every single development in OPEC production cut negotiations. Markets have been responding to information from these negotiations accordingly. Despite all the information about the possibility of the deal that is swinging the pendulum between oil price recovery and a renewed crash, the parties in the negotiation are effectively showing that they cannot reach a deal. Any analyst that pays attention to the geo-political interests and market share rivalries between these actors, would have put the odds against a production cut deal. This is what Trade Opus analysts have been arguing for a long time and it seems to be holding true.
OPEC is Divided
The first variable that underpins the likelihood of an oil production cut deal, is the relationship between OPEC members. The organization is far from being a monolith. In fact, it is probably one of the most politically divided international organizations. read more…
The binary options industry has always been an industry dominated by dubious organizations. Just recently we have been seeing more and more efforts to expose the overwhelming amount of scammers that run it. Governmental organizations and financial regulators across the globe have been actively looking for the wolves who are running all the scamming activities. It seems that these wolves are particularly crafty and they have been able to avoid legal sanctions with unparalleled guile. read more…
Major Events of Last Week
The event that dominated last week’s proceedings was, without doubt, Donald Trump’s stunning and surprising victory in the US presidential election. As a direct consequence, the Republican Party succeeded in retaining control of both major chambers of Congress. These developments helped initiate a boost in post-election trader sentiment which underpinned fresh strength in global equities and the US Dollar. This positivity arose despite markets voicing concerns about Trump’s unpredictability. Although stock prices plummeted dramatically throughout the election night, a significant recovery resumed as soon as it became evident that a Trump win was a reality. In fact, US equities surged to record levels while the US Dollar strengthened across the board against a basketful of other major currencies. The leading US indices produced mixed reactions last Friday typified by the Dow Jones Industrial Average climbing 41 points; the S&P500 dropping 2 points and the NASDAQ rising by 29 points. read more…
We’re proud to announce the first in our new range of trading tools that we are developing – the TradeOpus economic calendar.
An updated calendar of market announcements is a key tool for any trader in any market. The calendar has options for filtering so that you only need to see the information you’re looking for. The calendar has an easy to use interface and includes filters for:
- Time and date
- Expected volatility
We’ve also included a an easy to grab code snippet underneath so that anyone can use it on their own website. Just copy the code and enjoy an automatically updated economic calendar for your visitors.
There is no doubt that 2015 has been full of economic volatility. From the price of oil, to stocks, indices and the economic performance of key countries, it has been a year in which finding a safe haven was an almost impossible mission. From within all the volatility, is seems that one of the best performers was Bitcoin. However, it also dipped after a stark rise in October, but it seems to be picking up steam again towards the year’s end. Maybe it is a kind of ‘Santa Claus Rally’ for a strange mix of investors.
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