Month: August 2019

US indices closed mixed on Wednesday, helped by shares in the Food & Staples Retailing (+1.73%), Materials (+1.32%), and Household & Personal Products (+1.18%) sectors but pressured by shares in the Banks (-2.15%), Energy (-0.76%), and Diversified Financials (-0.72%) sectors. On the economic data front, MBA Mortgage Applications increased by 5.3% in week ending August 2 vs a 1.4% decrease in the prior week. The S&P 500 (2,883.98) trades below its 20d moving average (2,976.92 – negative slope) and its 50d moving average (2,930.76 – positive slope).

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

BRENT Crude Technical Snap (Daily)

Pivot: 59.50 Our preference: short positions below 59.50 with targets at 58.55 & 57.80 in extension. Alternative scenario: above 59.50 look for further upside with 60.00 & 60.55 as targets. Comment: as long as the resistance at 59.50 is not surpassed, the risk of the break below 58.55 remains high.

Today’s Economic Events

07:00 GE JUN Industrial Production (MoM) exp: -0.5% prev: 0.3%
07:45 FR JUN Trade Balance (M) exp: NA prev: -3278
15:30 US W30 Crude Oil Inventories (WoW chg) exp: NA prev: -8496
20:00 US JUN Consumer Credit (B USD) exp: NA prev: 17.1

US indices closed higher on Tuesday after China moved to stabilize its currency helped by shares in the Telecommunication Services (+0.63%), Utilities (+1.3%) and Materials (+0.08%) sectors. On the economic data front, there was no economic news to report. The S&P 500 (2,881.77) trades below its 20d moving average (2,982.37 – negative slope) and its 50d moving average (2,929.13 – positive slope).


European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was mixed against all of its major pairs on Tuesday. On the economic data front, there was no economic news to report.

The Euro was bullish against all of its major pairs with the exception of the GBP and AUD. In Europe, German factory orders rose 2.5% in June (+0.5% expected) after a 2% decline a month earlier (revised from -2.2%). Separately, the German construction PMI index fell to 49.5 in July from 50 in June. 

The Australian dollar was bullish against all its major pairs. read more

EMEA Base Oil Price Report

Base oil markets in Europe, the Middle East and Africa appear to have gone almost into limbo now, with many key players away from desks on vacation. Trading will be slow this month, as many blending operations have closed, are operating on reduced schedules or are conducting maintenance.  

API Group I prices are mostly stable, but solvent neutrals perhaps face some upward pressure due to production cutbacks, as reflected in the very few offers heard in recent days. Bright stocks, on the other hand may have yielded some value. Any of these moves have been minor – around $5 or $10 per metric ton. read more

BRENT Crude Technical Snap (Daily)

Pivot: 59.70 Our preference: long positions above 59.70 with targets at 60.90 & 61.50 in extension. Alternative scenario: below 59.70 look for further downside with 59.10 & 58.30 as targets. Comment: the RSI calls for a rebound.

Today’s Economic Events

No major economic report scheduled.

U.S. indices closed lower on Monday pressure by shares in the Technology Hardware & Equipment (-2.65%), Semiconductors & Semiconductor Equipment (-1.6%) and Energy (-1.35%) sectors. On the economic data front, the ISM Non-Manufacturing Index dropped to 53.7 in July (vs. 55.5 estimated) from 55.1 in June. Also, the final readings of July Markit U.S. Services PMI posted 53.0 in July (vs. 52.2 expected and preliminary). The S&P 500 (2,844.74) trades below its 20d moving average (2,987.27 – negative slope) and breaks below its 50d moving average (2,928.01 – flat slope).

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

BRENT Crude Technical Snap (Daily)

Pivot: 61.90 Our preference: short positions below 61.90 with targets at 60.50 & 60.00 in extension. Alternative scenario: above 61.90 look for further upside with 62.50 & 62.95 as targets. Comment: the RSI is mixed to bearish.

Today’s Economic Events

08:50 FR JUL F Markit Composite PMI exp: 51.7 prev: 51.7
08:50 FR JUL F Markit Services PMI exp: 52.2 prev: 52.2
09:00 EU JUL F Markit Composite PMI exp: 51.5 prev: 51.5
09:00 EU JUL F Markit Services PMI exp: 53.3 prev: 53.3
14:45 US JUL F Markit Composite PMI exp: NA prev: 51.6
14:45 US JUL F Markit Services PMI exp: NA prev: 52.2
15:00 US JUL ISM – Non Manufacturing exp: 55.8 prev: 55.1