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The US equities plunged amid lower oil prices and USD appreciation

Discussion in 'Current Market Sentiments' started by fx-recommends, Dec 31, 2015.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    The oil prices came under pressure again after US EIA Oil stockpile of the week ending on Dec.25 which has shown increasing by 2.629m barrels, while the market was waiting for decreasing by 2.5m, after setting back in the week ending on Dec. 18 by 5.877m which could spur demand for oil to rebound by the end of last week.

    The US equities came under pressure amid the slide of the oil prices which dampened the energy sector companies and the greenback appreciation which erodes the assets value and hurts the exporting activity.

    While the current bullish interest rate outlook in US is still forming threats to the economic activity driving the US major stocks indexes to the first annual loss in for years.

    In the same time, raising the interest rate in US can form pressure on the central banks in the emerging markets to stem their easing stimulating measurements to support their currencies by raising the borrowing cost amid rising of the greenback value can export inflation pressure to their economies.

    Have a good day

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