Buoyed by China data
Oil prices are a little higher today after paring gains at the start of the week to remain near the highs of the last month, or so. Brent crude has mostly traded between $76 and $86 since early December but the mood appears to have become a little bit more bullish thanks to some promising economic data.
The prospect of a soft landing in the US and a shallower economic hit in China from the Covid transition, not to mention a strong rebound, has driven the latest rebound in crude prices and the narrative on both of these doesn’t appear to be shifting. The China data overnight was a real positive, enabling Brent to reverse yesterday’s declines.
Now it’s over to Davos and earnings season to get a look at how policymakers and business leaders perceive the latest developments, and whether companies are planning for tough conditions ahead.
Gold is paring gains for a second day as the dollar rebounds slightly and yields creep higher. Perhaps we’re just seeing some broader market profit-taking ahead of what could be another eventful week. Gold briefly surpassed the upper end of what in recent years has been a tough trading zone between $1,880 and $1,920. That may be contributing to some profit-taking, with the next major test being $2,000, where gold briefly traded above last March.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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