Month: April 2019

US indices closed higher on Wednesday, led by shares in the Semiconductors & Semiconductor Equipment (+2.03%), Automobiles & Components (+1.64%) and Materials (+1.33%) sectors. On the economic data front, MBA mortgage applications jumped by 18.6% in week ended March 29th from a rise of 8.9% in the previous week. The ADP employment change reached 129k in March (estimated 175k) compared to 197k in February. In other news, Markit US services PMI reached 55.3 in March (forecasted 54.8) vs. 56 a month earlier while Markit US composite PMI decreased to 54.6 in March from 55.5 in February. Finally, the ISM non-manufacturing index decreased to 56.1 in March (expected 58) vs. 59.7 in the prior month. The S&P 500 (2,873.40) stays above both its 20d moving average (2,816.65 – positive slope) and 50d moving average (2,768.97 – positive slope).

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

BRENT Crude Technical Snap (Daily)

Pivot: 69.15 Our preference: long positions above 69.15 with targets at 70.30 & 70.75 in extension. Alternative scenario: below 69.15 look for further downside with 68.70 & 68.20 as targets. Comment: the RSI is bullish and calls for further upside.

Today’s Economic Events

08:50 FR MAR F Markit Composite PMI exp: 49.1 prev: 48.7
08:50 FR MAR F Markit Services PMI exp: 48.9 prev: 48.7
09:00 EU MAR F Markit Composite PMI exp: 51.3 prev: 51.3
09:00 EU MAR F Markit Services PMI exp: 52.7 prev: 52.7
10:00 EC FEB Euro-Zone: Retail Trade (MoM) exp: 0.2% prev: 1.3%
13:15 US MAR ADP Employment Report (k) exp: 182 prev: 183
14:45 US MAR F Markit Composite PMI exp: NA prev: 54.3
14:45 US MAR F Markit Services PMI exp: NA prev: 54.8
15:00 US MAR ISM – Non Manufacturing exp: 57.8 prev: 59.7
15:30 US W12 Crude Oil Inventories (WoW chg) exp: NA prev: 2800 read more

U.S. indices closed mixed on Tuesday. Shares in the Food & Staples Retailing (-2.92%), Telecommunication Services (-1%) and Energy (-0.7%) sectors pulled back while shares in the Technology Hardware & Equipment (+1.08%), Real Estate (+0.86%) and Media (+0.75%) sectors gained a bit of strength. On the economic data front, durable goods orders dropped 1.6% MoM in February (estimated -1.8%, +0.1% in January). The S&P 500 (2,867.24) stays above both its 20d moving average (2,811.60 – positive slope) and 50d moving average (2,764.16 – positive slope).

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

Base oil markets in Europe, the Middle East and Africa diverged this week, depending on grade and type. API Group I grades are largely stable except for bright stock, which has come under downward pricing pressure because demand fell while availability stayed healthy.

Meanwhile, Group II and Group III markets are seeing aggressive selling from suppliers bent on gaining or protecting market share. Prices are weakening in response to the quantities of product circulating in the markets, and with no signs of any let up on this score, the scene is set for further price erosion. read more

BRENT Crude Technical Snap (Daily)

Pivot: 68.60 Our preference: long positions above 68.60 with targets at 69.65 & 70.30 in extension. Alternative scenario: below 68.60 look for further downside with 68.20 & 67.75 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Today’s Economic Events

US MAR Total Vehicule Sales (M) exp: NA prev: 16.6
10:00 EC FEB Euro-Zone: PPI (MoM) exp: 0.2% prev: 0.4%
13:30 US FEB P Durable Goods Ex Transportation exp: 0.3% prev: -0.2%
13:30 US FEB P Durable Goods Orders exp: -1% prev: 0.3%

U.S. indices closed higher on Monday, led by shares in the Banks (+2.94%), Automobiles & Components (+2.64%) and Transportation (+2.25%) sectors. On the economic data front, retail sales declined 0.2% MoM in February (estimated +0.2%, +0.7% in January). In other news, the Markit U.S. Manufacturing PMI was confirmed at 52.4 in March (forecasted and previously estimated 52.5), compared with 53.0 in the prior month. The ISM Manufacturing PMI rose to 55.3 in March (expected 54.5) from 54.2 in February. Finally, construction spending increased 1.0% MoM in February (estimated -0.2%, +2.5% in January). The S&P 500 (2,867.19) stays above both its 20d moving average (2,807.72 – positive slope) and 50d moving average (2,760.23 – positive slope).

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

Today’s Economic Events

08:50 FR MAR F Markit Manufacturing PMI exp: 50.1 prev: 49.8
09:00 EU MAR F Markit Manufacturing exp: 47.7 prev: 47.6
10:00 EC FEB Euro-Zone: Unemployment Rate exp: 7.8% prev: 7.8%
13:30 US FEB Retail Sales exp: 0.3% prev: 0.2%
13:30 US FEB Retail Sales less Autos exp: 0.4% prev: 0.9%
14:45 US MAR F Markit Manufacturing PMI exp: NA prev: 52.5
15:00 US FEB Construction Spending (MoM) exp: 0.1% prev: 1.3%
15:00 US JAN Business Inventories exp: 0.3% prev: 0.6%
15:00 US MAR ISM – Manufacturing exp: 54.5 prev: 54.2
15:00 US MAR ISM – Price Paid exp: NA prev: 49.4 read more

U.S. indices closed higher to finish the week on Friday, boosted by shares in the Semiconductors & Semiconductor Equipment (+1.38%), Health Care Equipment & Services (+1.33%) and Transportation (+1.3%) sectors. On the economic data front, personal income rose 0.2% MoM in February (estimated 0.3%, -0.1% in January) and personal spending increased by 0.1% in January (forecasted 0.3%, -0.6% in December). The MNI Chicago PMI fell to 58.7 in March (expected 61.0) from 64.7 in February. Also, new home sales grew 4.9% MoM in February to an annualized rate of 667K units (estimated 620K). Finally, the University of Michigan sentiment index was confirmed at 98.4 in March (forecasted and previously estimated 97.8). The S&P 500 (2,834.40) stays above both its 20d moving average (2,805.50 – positive slope) and 50d moving average (2,755.61 – positive slope).

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