Month: July 2018

Brent Crude: Technical Snap: 13.07.18

Pivot: 74.60. Short positions below 74.60 with targets at 73.70 & 73.10 in extension. Above 74.60 look for further upside with 75.15 & 75.80 as targets. RSI is mixed with a bearish bias.

General Market Comment

US indices closed higher on Thursday lifted by shares in the Software & Services (+2.13%), Technology Hardware & Equipment (+1.77%) and Capital Goods (+1.33%) sectors. On the economic data front, initial jobless claims decreased to 214K in the week ending July 7 (estimated 225K) from a revised 232K previously. Continuing claims also decreased to 1.739M in the week ending June 30 (anticipated 1.73M) from a revised $1.742M last week. In addition, CPI MoM increased by 0.1% in June (expected 0.2%) from 0.2 in May. Finally, the Bloomberg consumer comfort index increased to 58 in the week ending July 8 from 57.6 in the prior week. The S&P 500 (2,798.29) remains above its 20d moving average (2,751.55 – flat slope) and 50d moving average (2,734.12 – positive slope). European markets are expected to start on a positive note. read more

EIA report records weekly rise in Nat Gas stocks

The U.S. Energy Information Administration (EIA) reported Thursday that domestic US supplies of natural gas rose by 51 billion cubic feet for the week ended July 6. Market consensus had called for a rise near 60 billion cubic feet. Total stocks stand at 2.203 trillion cubic feet, down 725 billion cubic feet from a year ago, and 519 billion below the five-year average, the government said. August natural Gas fell 2.1 cents to $2.808  per million British thermal units, down from $2.824 before the supply data. read more

Brent Tumbles 7%

Oil prices rebounded Thursday as participants reassessed news that had sent Brent to its biggest decline in almost 2 1/2 years on Wednesday. The price of crude fell in that session amid concerns over resurgent Libyan supply and the U.S.-China trade dispute. But some analysts question how soon that oil will hit markets, while investors around the world appeared to take a more relaxed view of the threat of a trade war on Thursday.  September Brent crude rose $1.08, or 1.5%, to $74.48 a barrel on London’s ICE Futures exchange. The contract ended Wednesday down nearly 7% at $73.40 a barrel, marking its lowest close since June 21.  Meanwhile,  August West Texas Intermediate crude the U.S. benchmark, was up 71 cents, or 0.9%, to $71.07 a barrel. The contract closed at $70.38 a barrel on the NYMEX at it’s lowest finish since June 25. read more

Today’s Economic Events

07:00 GE JUN F Consumer Price Index (MoM) exp: 0.1% prev: 0.1%
07:00 GE JUN F CPI – EU Harmonised (MoM) exp: 0.1% prev: 0.1%
07:45 FR JUN F Consumer Price Index (MoM) exp: 0.1% prev: 0.1%
07:45 FR JUN F CPI – EU Harmonised (MoM) exp: 0.1% prev: 0.1%
10:00 EC MAY Euro-Zone: Industrial Production (MoM) exp: 1.1% prev: -0.9%
13:30 US JUN Consumer Price Index (MoM) exp: 0.2% prev: 0.2%
13:30 US JUN CPI – Ex Food & Energy (MoM) exp: 0.2% prev: 0.2%
13:30 US W26 Initial Jobless Claims (k) exp: 227 prev: 231
19:00 US JUN Monthly Budget Statement (B USD) exp: -87 prev: -147 read more

General Market Comment

US indices closed lower on Wednesday pressured by shares in the Semiconductors & Semiconductor Equipment (-2.31%), Automobiles & Components (-2.21%), Energy (-2.15%) sectors. Crude dropped the most in 2-years. On the economic data front, MBA mortgage applications increased by 2.5% in the week ending July 6 from -0.5% in the prior week. In addition the PPI final demand MoM increased by 0.3% in June (estimated +0.2%) from +0.5% in May. Finally, wholesale inventories MoM increased by 0.6% in the final estimate in June (estimated +0.5%) from +0.5% in May. The S&P 500 (2,774.02) remains above its 20d moving average (2,750.45 – flat slope) and 50d moving average (2,731.25 – positive slope). read more

General Market Comment

US indices closed higher on Tuesday lifted by shares in the Household & Personal Products (+1.77%), Food, Beverage & Tobacco (+1.3%) and Telecommunication Services (+1.13%) sectors. On the economic data front, the NFIB small business optimism index fell to 107.2 in June (estimated 106.9) compared to 107.8 in May. The S&P 500 (2,793.84) remains above its 20d moving average (2,751.05 – flat slope) and 50d moving average (2,728.73 – positive slope). European markets are expected to start on a negative note. read more

EMEA Base Oil Report

Base oil prices in Europe, the Middle East and Africa seem stable this week, with demand undergoing a seasonal slowdown. Producers sounded content about current values, raising the possibility that current levels could last at least through the end of August.

Crude oil costs have stabilized as dated deliveries of Brent posted yesterday at $77.95 per barrel for September front month. West Texas Intermediate crude was also little changed from last week, trading at $73.85 for August settlement. ICE LS gas oil was static at around $672 per metric ton, still for July settlement. All these prices are based on ICE trade in London late yesterday. read more

General Market Comment

US indices closed sharply higher on Monday lifted by shares in the Banks (+2.73%), Insurance (+2.16%) and Transportation (+1.97%) sectors as trade war concerns between the U.S. and global trading partners calmed. The S&P 500 (2,784.17) remains above its 20d moving average (2,750.50 – flat slope) and 50d moving average (2,726.26 – positive slope). European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was mixed against its pairs on Monday. No major economic data was released. read more