The three things you need to know about this week in markets
OPEC Extends Production Cuts
Yesterday, OPEC and allies met in Vienna to discuss future production cuts. A nine-month extension in supply cuts was agreed upon, with a possible further three-month extension, should oil prices fail to rise.
Crude oil breached the $51 level thanks to the news. However, the rally was capped as investors fear that a simple extension will not be enough to increase prices and that a decrease in the size of production would be a more favourable approach to tackle supply woes.
Equities Recover After Last Week’s Slump
After last week’s geopolitical woes between Russia and the US, the S&P 500 suffered its biggest one day loss since September.
However, this week the S&P 500 hit its target mark and its highest point on record. The US proxy skated past the $2400 level advancing further thanks to robust economies in both European and the US.
Cryptocurrencies Hit Record Highs
Bitcoin hit $2600!
Japan is placing most of these bullish bets. Japanese investors accounted for 55% of the overall trading volume, inching up from 40% on Thursday. Investors expect that Bitcoin will soon be easily converted into US dollars, underpinning this latest rally.
This week a major investment company, Fidelity, endorsed the digital asset, which also helped support the rally.