Month: August 2018

Brent Crude Technical Snap

Pivot: 72.15. Long positions above 72.15 with targets at 73.40 & 73.75 in extension. Below 72.15 look for further downside with 71.80 & 71.40 as targets. RSI is mixed with a bullish bias.

General Market Comment

US indices closed lower on Friday after President Trump authorized the doubling of metals tariffs on Turkey. Shares in the Semiconductors & Semiconductor Equipment (-2.23%), Automobiles & Components (-2.11%) and Materials (-1.43%) sectors were under pressure. On the economic data front, CPI MoM increased by 0.2% in July, meeting the estimate, from +0.1% in June. Lastly, monthly budget statement deficit increased to $76.9B (estimated $75.4B) in July vs. $42.9B in June. The S&P 500 (2,833.28) remains above both its 20d moving average (2,825.64 – positive slope) and 50d moving average (2,784.85 – positive slope). read more

US/China trade tensions escalate

According to wire reports China has proposed retaliatory tariffs on $60 billion worth of U.S. goods. These goods range from (LNG) to aircraft on Friday. On Friday a senior Chinese diplomat cast doubt on prospects of talks with Washington. Tensions were exacerbated as the US increased pressure for trade concessions from China by proposing a 25% tariff on $200 billion worth of Chinese imports.

In response, China retaliated though has consistently appealed for the US to act rationally to resolve the ongoing dispute. Thus far, the US and China have implemented tariffs on $34 billion worth of each others’ goods since July, with the US cited as being ready to implement tariffs on an additional $16 billion of Chinese goods, which China has already suggested it will respond to immediately. China has to date either imposed or proposed tariffs on $110 billion of U.S. goods, representing the vast majority of China’s annual imports of American products. read more

Brent oil futures were flat to lower under $73 a barrel late Friday in Europe. The contract held gains from the previous session, although upside appears limited as trade concerns weigh.

Commodity Closing – Europe/Oil-Gas Majors 03.08.18

Brent Crude Technical Snap

Pivot: 72.80.  Long positions above 72.80 with targets at 73.75 & 74.10 in extension. Below 72.80 look for further downside with 72.30 & 71.85 as targets. RSI is mixed to bullish.

Today’s Economic Events

US JUL Average Hourly Earnings (MoM) exp: NA prev: 0.2%
US JUL Average Weekly Hours exp: NA prev: 33.8
07:45 FR JUN Central Govt. Balance (B EUR) exp: NA prev: -55.1
08:50 FR JUL F Markit Composite PMI exp: 54.6 prev: 54.5
08:50 FR JUL F Markit Services PMI exp: 55.3 prev: 55.3
09:00 EU JUL F Markit Composite PMI exp: 54.3 prev: 54.3
09:00 EU JUL F Markit Services PMI exp: 54.4 prev: 54.4
10:00 EC JUN Euro-Zone: Retail Trade (MoM) exp: 0.3% prev: 0%
13:30 US JUL Change in Manufact. Payrolls (k) exp: 23 prev: 36
13:30 US JUL Change in Nonfarm Payrolls (k) exp: 195 prev: 213
13:30 US JUL Unemployment Rate exp: 3.9% prev: 4%
13:30 US JUN Trade Balance (B USD) exp: -46 prev: -43.1
14:45 US JUL F Markit Composite PMI exp: NA prev: 55.9
14:45 US JUL F Markit Services PMI exp: NA prev: 56.2
15:00 US JUL ISM – Non Manufacturing exp: 58.6 prev: 59.1 read more

General Market Comment

US indices closed mixed on Thursday as Apple becomes the first US company to reach a valuation of $1T. Shares in the Media (-0.95%), Materials (-0.72%) and Real Estate (-0.53%) sectors ended on a negative note while shares in the Technology Hardware & Equipment (+2.3%), Household & Personal Products (+2.05%) and Retailing (+1.32%) sectors gained momentum. On the economic data front, initial jobless claims increased to 218K in the week ending July 28 (estimated 220k) from 217K previously. Continuing claims decreased to 1.724M in the week ending July 21 (anticipated 1.75M) from a revised 1.747M last week. In addition, the Bloomberg consumer comfort index decreased to 58.6 in the week ending July 29 from 59 in the prior week. In other news, durable goods orders increased in the final estimate of 0.8% in June (estimated +1%) from -0.3% in the previous month. Finally, factory orders increased by 0.7% in June, estimated to remain flat compared to 0.4% in May. The S&P 500 (2,827.22) remains above both its 20d moving average (2,806.53 – positive slope) and 50d moving average (2,769.00 – positive slope). read more

Commodity Closing – Europe/Oil-Gas Majors 02.08.18

Oil gains on stockpiles decline – Reports

Oil prices strengthened Thursday, turning higher after traders saw an industry report suggesting U.S. crude stockpiles would soon begin to decline again after a surprise rise in the latest week.