Markets

Oil prices on the rise

The message on yesterday’s trading day was clear: Strong economic data on the stock market was acknowledged with price increases, fears of a second wave of corona apparently faded into the background. The oil price also benefited from this, which is also supported by production cuts.

The most important thing about the economy and the oil price in advance:

  • The American job market signals a recovery in the US economy
  • OPEC funding discipline supports the oil price

The American job market has recently continued to develop positively and is fueling hope of a further economic recovery. The official unemployment rate dropped from 13.3 to 11.1 percent in June compared to the previous month, while economists had only expected a drop to 12.5 percent. A total of 4.8 million jobs were created outside of agriculture, significantly more than the expected 3.2 million.

However, the numbers also show that it could still take some time before full employment can again be seen as before the Corona crisis. In addition, new adversity is looming: recently, the number of new infections in America climbed over 50,000 people a day for the first time. These are not good prospects for the long holiday weekend. The numbers could continue to rise in the coming week, ending the economic euphoria.

Products on S&P 500®

Products on Dow Jones Industrial Average

The recent upswing on the oil market is also thanks to the funding discipline of the OPEC countries, including Russia. According to estimates, OPEC significantly reduced its production to almost 23 million barrels a day in June alone. Saudi Arabia in particular, with a production volume of around 7.5 million barrels a day, cut its production more than agreed. Russia has also significantly reduced its funding, so that overall funding discipline was adhered to well.

The development of crude oil stocks in the USA also contributed to a scarce supply. They have fallen by more than 8 million barrels in the past few weeks, a comparatively high figure. However, crude oil reserves in the US remain very high at more than 500 million barrels. Speculative futures market investors, who have expanded their net long positions in Brent oil and are now at their highest level since March 2020, are also very optimistic. The WTI oil price has climbed to over $ 40, the highest level in almost four months.

Products on WTI Crude Future

Products on Brent Crude Future

When purchasing certificates and leverage products, investors should familiarize themselves with how it works and be aware of the opportunities and risks. Investors should be particularly aware of the increased risks associated with leverage products. In addition, attention should also be paid to the creditworthiness and thus the default risk of the issuer. Further important and worth knowing information about our products can be obtained by calling 0800 4000 910 or on our website www.hsbc-zertifikate.de.

Source: HSBC

Click here for the HSBC homepage

Important instructions

This document was created by HSBC Trinkaus & Burkhardt AG (“HSBC”). It is for information only and may not be passed on to third parties without the express written consent of HSBC. The document is a marketing tool. The legal requirements for impartiality of financial analyzes have not been met. There is no ban on trading the financial products discussed before the publication of this presentation (“front running”). The document also does not replace specialist investment advice tailored to individual requirements. An offer to subscribe is not yet linked to this either. The document is only intended for people who have their permanent place of residence in Germany or Austria. It is not intended for recipients in other jurisdictions, and especially not for U.S. citizens. Any information on historical performance (including simulations) and forecasts of future performance of the financial products / financial indices shown are not a reliable indicator of future performance. If the financial products discussed are quoted in a currency other than EUR, the return may rise or fall due to currency fluctuations. The tax treatment of an investment depends on the personal circumstances of the investor and may be subject to future changes. The information given in this document is based on sources that we believe to be reliable but have not been subjected to a neutral review. We accept no liability and assume no liability for the correctness and completeness of the information contained herein.

Advertising notices

The basic prospectuses as well as the final terms and the basic information sheets are available here. By entering the respective WKN in the search field or via the “Products” tab, you will get to the single product view. There, under “Downloads”, the corresponding final conditions for the individual products, which contain the offer conditions applicable to the respective security including the relevant emission conditions, as well as the relevant basic information sheets can be called up.

BaFin’s approval of the base prospectus should not be understood as its approval of the securities offered. We recommend that interested parties and potential investors read the base prospectus and the final terms before making an investment decision in order to obtain as much information as possible, in particular about the potential risks and opportunities of the security.

You are about to purchase a product that is not easy and difficult to understand.

License Notices

“DAX®”, “TecDAX®”, “MDAX®”, “VDAX-NEW®”, “SDAX®”, “DivDAX®”, “ÖkoDAX®”, “Entry Standard Index”, “X-DAX®” and “GEX®” are the intellectual property (including registered trademarks) of Deutsche Börse AG (“DBAG”), Deutsche Börse Group or its licensors and is used under a license. The securities are neither promoted nor advertised, distributed or supported in any other way by DBAG, Deutsche Börse Group or its licensors, research partners or data providers, and DBAG, Deutsche Börse Group and its licensors, research partners or data providers do not accept any liability and close any claims Liability (from negligent as well as from other behavior) in this regard generally from and in particular with regard to any errors, omissions or disturbances of the relevant index or the data contained therein.

EURO STOXX 50®, STOXX 50®, STOXX® 600 and its brands, STOXX® Europe 600 Oil & Gas, STOXX® Europe 600 Basic Resources, EURO STOXX 50® DVP are the intellectual property (including registered trademarks) of STOXX Ltd., Zug, Switzerland (“STOXX”), the Deutsche Börse Group or its licensor and is used under a license. The securities are neither promoted nor advertised, distributed or supported in any other way by STOXX, Deutsche Börse Group or its licensors, research partners or data providers, and STOXX, Deutsche Börse Group and its licensors, research partners or data providers do not assume any liability and close any Liability (from negligent as well as from other behavior) in this regard generally from and in particular with regard to any errors, omissions or disturbances of the relevant index or the data contained therein.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by HSBC Trinkaus & Burkhardt AG (“Licensee”). Standard & Poor’s®, S & P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by SPDJI and further licensed by the licensee for certain purposes. The Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and neither of these parties make any representations regarding the advisability of investing in these products and accepts no liability for errors, omissions or interruptions in the S&P 500 Index.

Nasdaq® and Nasdaq-100 Index® are registered trademarks of Nasdaq, Inc. (jointly with its affiliates as the “Companies”) and licensed to HSBC Trinkaus & Burkhardt AG for use by them. The companies make no statement as to the legality or suitability of the securities. The companies do not issue, recommend, sell or advertise the securities. SOCIETIES DO NOT WARRANT OR TAKE ANY LIABILITY RELATING TO SECURITIES.

The “Dow Jones Industrial Average” is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by HSBC Trinkaus & Burkhardt AG (“Licensee”). Standard & Poor’s® and S & P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and DJIA®, The Dow®, Dow Jones® and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by SPDJI and further licensed by the licensee for certain purposes. The Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and neither of these parties make any representations regarding the advisability of investing in these products and accepts no liability for any errors, omissions, or interruptions in the Dow Jones Industrial Average.

Publisher: HSBC Trinkaus & Burkhardt AG, Königsallee 21/23, 40212 Düsseldorf

Tags

Related Articles

Back to top button
Close
Close