Crude Oil Prices Influenced Market Sentiment

Crude Oil Prices Influenced Market Sentiment


A stronger Indian Rupee against the US Dollar and easing crude prices influenced market sentiment. Oil prices tumbled as China posted its weakest economic expansion in nearly three decades and the IMF revised its global growth forecast lower, raising fresh concerns about fuel demand.

Market Sentiment :

Market sentiment is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events.

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If investors expect upward price movement in the stock market, the sentiment is said to be bullish. On the contrary, if the market sentiment is bearish, most investors expect downward price movement. Market participants who maintain a static sentiment, regardless of market conditions, are described as permabulls and permabears respectively.

Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is believed to be a good predictor of market moves and a good indicator to hedge risk[2], especially when it is more extreme


Crude Oil Prices Influenced Market Sentiment