SVET Daily Market Update (Monday, December 5)

06 Dec 2022 by rate3

ISM coming out with unexpectedly high PMI (56.5 vs 53) brought NASDAQ down right after the index release at 9:30 AM ET. After that BTC, which was downing 12 hrs prior to that, recovered (going over 1700) while NASDAQ continued to drop reaching below 11200 and closing at 11239.

However, most of the today's drama was going on the oil market where crude futures fell below USD 77 from its daily high of 82.6. What sparkled that has different interpretations among analysts.

Some are pointing out on Russia today receiving the go-ahead from US and EU to sell its oil with USD 60 / barrel ceiling on it. That might relieve pressure on Indian, Chines and Turkish energy markets - the main exporters of Urals (popular Russian oil type).

Others are saying that it is the recession sign. Many countries faced by the growing USD, energy under-supplies and local economies slow-down start to cut their needs for the crude and its products.

I won't be original saying that it was a bit of both plus daily speculators' playing against the crowd and long-term holders. The later also explains today's BTC diversion from NASDAQ on a daily chart. There are still a lot of overly optimistic (or daring, depending on the angle you want to put on that) crypto traders, which keep betting against FED.