US indices closed lower on Wednesday, pressured by shares in the Automobiles & Components (-1.83%), Semiconductors & Semiconductor Equipment (-1.67%) and Health Care Equipment & Services (-1.51%) sectors. On the economic data front, the ADP private jobs increased 183K in February (vs +190K estimated, +300K in January). In other news, the trade deficit widened to $59.8B in December (vs $57.9B deficit expected) from $50.3B in November. Finally, the Federal Reserve released its Beige Book, stating a continued expansion in the economic activity in late January and February despite the Government shutdown and reported upward price pressures from tariffs on certain goods and services. The S&P 500 (2,771.45) stays above its 20d moving average (2,766.45 – positive slope) and 50d moving average (2,659.44 – positive slope).

European markets are expected to start on a negative note. read more

BRENT Crude Technical Snap (Daily)

Pivot: 66.00 Our preference: short positions below 66.00 with targets at 65.05 & 64.60 in extension. Alternative scenario: above 66.00 look for further upside with 66.35 & 66.60 as targets. Comment: the RSI is bearish and calls for further decline.

Today’s Economic Events

13:15 US FEB ADP Employment Report (k) exp: 192 prev: 213
13:30 US DEC Trade Balance (B USD) exp: -55.7 prev: -49.3
15:30 US W8 Crude Oil Inventories (WoW chg) exp: NA prev: -8647

U.S. indices closed lower on Tuesday, dragged lower by shares in the Capital Goods (-0.74%), Consumer Durables & Apparel (-0.66%) and Insurance (-0.56%) sectors. On the economic data front, final readings of February Markit U.S. services PMI posted 56.0 (vs 56.2 expected and previously estimated) and Markit U.S. composite PMI was 55.5 (vs 55.8 preliminary). Also, the ISM Non-manufacturing Index rose to 59.7 in February (vs 57.4 forecasted) from 56.7 in January. In other news, new home sales climbed to 621K in December (vs 600K expected) from 599k in November. The S&P 500 (2,789.65) stays above its 20d moving average (2,764.86 – positive slope) and 50d moving average (2,653.36 – positive slope).

European markets are expected to open on a flat note. read more

European, Middle Eastern and African base oil prices have been sliding lower for varying reasons during the past week, depending on where and which type and grade of base stock is being considered.

Normally at this time of year a traditional upswing in demand has always taken place due to blenders restocking ahead of the busy summer driving season, and also in anticipation of industrial output gaining momentum over the next three of four months. This event has simply not happened this year, nor are there any real or definitive signs out there to suggest that an upturn is about to take place. read more

BRENT Crude Technical Snap (Daily)

Pivot: 65.05 Our preference: long positions above 65.05 with targets at 65.95 & 66.35 in extension. Alternative scenario: below 65.05 look for further downside with 64.60 & 63.90 as targets. Comment: a support base at 65.05 has formed and has allowed for a temporary stabilisation.

Today’s Economic Events

08:50 FR FEB F Markit Composite PMI exp: 49.9 prev: 49.9
08:50 FR FEB F Markit Services PMI exp: 49.9 prev: 49.8
09:00 EU FEB F Markit Composite PMI exp: 51.2 prev: 51.4
09:00 EU FEB F Markit Services PMI exp: 52.2 prev: 52.3
10:00 EC JAN Euro-Zone: Retail Trade (MoM) exp: 1.1% prev: -1.6%
14:45 US FEB F Markit Composite PMI exp: NA prev: 55.8
14:45 US FEB F Markit Services PMI exp: NA prev: 56.2
15:00 US DEC New Home Sales (k) exp: 590 prev: 657
15:00 US FEB ISM – Non Manufacturing exp: 57.3 prev: 56.7
19:00 US JAN Monthly Budget Satement (B USD) exp: NA prev: -14 read more

U.S. indices closed lower on Monday, pressured by shares in the Health Care Equipment & Services (-2.12%), Telecommunication Services (-2.09%) and Consumer Services (-1.03%) sectors. On the economic data front, construction spending dropped 0.6% MoM in December (vs +0.1% estimated, +0.8% in November). The S&P 500 (2,792.81) stays above its 20d moving average (2,761.62 – positive slope) and 50d moving average (2,647.71 – positive slope).

European markets are expected to start on a flat note. read more

BRENT Crude Technical Snap (Daily)

Pivot: 65.90 Our preference: short positions below 65.90 with targets at 64.60 & 63.90 in extension. Alternative scenario: above 65.90 look for further upside with 66.50 & 67.10 as targets. Comment: as long as the resistance at 65.90 is not surpassed, the risk of the break below 64.60 remains high.

Today’s Economic Events

10:00 EC JAN Euro-Zone: PPI (MoM) exp: NA prev: -0.8%
15:00 US DEC Construction Spending (MoM) exp: 0.2% prev: 0.8%