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Morning Market Scoop 13 November 2018

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Barry Dumas
Moring-market-scoop

Morning Market Scoop 13 November 2018

In our morning market scoop:

  • Alibaba sets new Singles Day record with more than $30.8 Billion in sales in 24 hours.
  • Saudi’s cutting oil production due to lower demand.

Alibaba's theme song..."busy earnin' ,You can't get enough"

"Who said Singles can’t have Fun”

What’s the scoop? Singles day in China

November 11th sees yet another singles day record in China as the Chinese shoppers have just spent a record breaking $30.8 billion in one day.

  • Singles day is a holiday that originated in China and is very popular among young people. It has become the world’s largest online and offline shopping day extravaganza. November 11th (11/11) was chosen specifically because the number “1” resembles an individual who is alone.
  • Alibaba started the online shopping craze 10 years ago as an opportunity for singles to treat and spoil themselves.

The big picture It doesn’t seem that the Chinese economy is fazed by the economic growth slowdown nor the ensuing trade war between themselves and the U.S as the singles day sales reached $1 Billion within the first minute and a half setting a new record day.

What does all this mean for me?

  • Retail therapy is changing, and it looks like the future of retail is ever evolving as shoppers want to buy smarter online via any device using any payment method. The funny thing is that shoppers still want to shop in the physical space with some human interaction.

Oil enters

“Oil market bears”

What’s the scoop? Saudi Arabia cutting Brent

Brent Crude Oil entered a bear market when the price crossed $70 last week, and news came out that Saudi Arabia is open to talks of cutting Oil production to try and curb the selloff in the oil market. The Saudi Oil Minister stated that the kingdom will be cutting 500 000 barrels a day from next month due to lower demand.

  • The kingdom being the largest producer of Oil within the OPEC countries made the announcements on Sunday which saw the Oil price rise over 1% in early morning trade on Monday. But eventually Brent Crude gave back all the gains as reports also surfaced that OPEC allies Russia was not as keen to cut production.

The big picture The price of Brent Crude has dropped 20% from the four-year high we recently saw in October. When taking a closer look at the Saudi statements the 500 000 barrels a day cut is nothing unusual when looking at their month to month swing range.

 

What does all this mean for me?

  • A reduction in the Oil price is always a good thing for SA consumers as that might lead to a reduction in our petrol price. But unfortunately looking at the other external factors like the depreciation of the Rand against the U.S Dollar, a petrol price decrease might not be on the cards soon.

 

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