Asia Pacific Market Open – S&P 500, Crude Oil Prices, OPEC, GBP, Brexit, AUD/USD
- Wall Street accelerated selloff as anticipated, sending crude oil[1] prices lower despite OPEC news
- GBP/USD[2] jawboned by volatile Brexit headlines, ultimately finishes lower as US Dollar[3] climbs
- Asia stocks may follow Wall Street lower as AUD/USD[4] risks extending a near-term selloff next
Check out our 4Q forecast for crude oil prices in the DailyFX Trading Guides page[5]
Crude oil prices succumbed to an eleventh day of consecutive losses, bringing the length of its losing streak to its most prolonged since at least 1984 as anticipated. Weekend OPEC comments from a meeting[6] and an announcement from Saudi’s Oil Minister for the need to cut production by 1M b/d from October levels failed to stem a selloff in the commodity. This was partially because of an intense selloff on Wall Street.
The S&P 500[7], in the aftermath of forming a bearish reversal pattern pointed out last week[8], tumbled almost two percent as it clocked in its largest decline in a single day in almost three weeks. The NASDAQ[9] Composite suffered about 2.78%. Drops in shares on Wall Street occurred amidst reports from Apple suppliers warning about weak demand.
This translated in US Dollar gains amidst safe haven bids which had a twofold impact on crude oil prices. First, a more expensive greenback makes the commodity relatively cheaper given that it is primarily priced in USD[10]. Second, sentiment-sensitive petroleum prices often move with global benchmark
