Morning review of the US market (05/10/2021)

US stocks hit new all-time highs last week, even amid weaker-than-expected figures on the labor market. According to the report, only 260,000 people were employed last April, instead of the projected 800,000. Nevertheless, both Dow Jones and S&P 500 soared, thanks to the growing confidence in the continued soft policy of the Federal Reserve.

As for the Asian markets, they moved in different directions this morning: China indices went down by 0.5%, while Japan indices increased by 0.6%.

In Europe, a new referendum on Scotland's withdrawal from Britain has been submitted.

Elections in Germany are also drawing near, and according to polls, around 25-26% voters are in favor of the Greens, 23-24% are for Merkel, while 15% are for the Social Democrats.

The world's epidemiological situation is also improving. UK, for instance, announced that a third of its adult population is already vaccinated. UK borders are now open, but only to Covid-free countries such as Israel and Portugal.

Going back to the markets, oil saw a slowdown in growth this morning, brought by the news of an attack in a US pipeline. Meanwhile, iron ore was up by 10% today, thanks to increasing demand in China.

Forecasts:

BRENT - trading at $ 68.80 today; will range at around $67.50- $ 70.50.

WTI - trading at $ 65.50 today; will range around $ 64.00 - $ 67.00.

Conclusion: Markets are calm at the moment. Sharp movements will begin as soon as the US releases its inflation report on Wednesday, May 12.