Maybe it is not a very popular commodity in trading, it is the price of natural gas that seems to draw investors' attention due to systematic increases. As early as June, the price of futures contracts was at its lowest level since the 1990s. Since then, it has increased by about 100 percent.
This week alone, the price of natural gas contracts increased by more than 7 percent and this instrument was one of the most rising in comparison with other markets. On a monthly basis, the price increased by 40 percent, and on a quarterly basis by more than 67 percent. The recent price increases may be related to the changing weather in the United States. Prices seem to remain high, as the weather is expected to be much colder than usual in the Midwest of the United States for the next 6-10 days, and then temperatures will be moderately low for the next 8-14 days, but still cooler than usual. In the Caribbean, on the other hand, there is a storm that is entering the Gulf of Mexico, and according to the current 10 percent chance of becoming a tropical cyclone.
From more popular markets, after good data from the Chinese economy this week, silver seemed to be gaining ground. The National Statistics Office of China reported this week that the Chinese economy grew by 4.9% y/y in the third quarter of 2020, accelerating from 3.2%. Moreover, industrial production grew by 6.9% y/y in September, which is the sixth month in a row and the fastest growth since December 2019. In weekly terms, the final weekly silver seems to gain over 1.8 percent.
In the currency market, the US dollar lost almost 1% in a week, and the currency that gained the most to the USD seems to be the Swiss franc (CHF) with a gain of +1.2%, while the euro, the British pound and the New Zealand dollar gained about 1%.
Of the popular stock exchange indices, the most seems to have lost the German DAX (-1.7%) on a weekly basis, with the accelerating epidemic in Europe and further restrictions. For comparison, the American S&P 500 index slipped only by 0.14 percent, the DJIA index by 0.33 percent, and the Nasdaq index did worse with a drop of over 1.3 percent.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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