Month: September 2019

U.S. indices closed mixed on Friday after disappointing jobs data. Shares in the Telecommunication Services (+0.91%), Food & Staples Retailing (+0.7%) and Food, Beverage & Tobacco (+0.61%) sectors traded higher while shares in the Transportation (-0.75%), Media (-0.53%) and Software & Services (-0.44%) sectors were under pressure. On the economic data front, nonfarm payrolls added 130K in August (vs. +160K expected, +159K in July), while unemployment rate was steady at 3.7% as expected). The S&P 500 (2,978.71) trades above its 20d moving average (2,905.44 – positive slope) and its 50d moving average (2,946.48 – positive slope).

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

BRENT Crude Technical Snap (Daily)

Pivot: 61.35 Our preference: short positions below 61.35 with targets at 60.65 & 60.25 in extension. Alternative scenario: above 61.35 look for further upside with 61.80 & 62.40 as targets. Comment: the RSI is mixed to bearish.

Today’s Economic Events

US AUG Average Hourly Earnings (MoM) exp: NA prev: 0.2%
US AUG Average Weekly Hours exp: NA prev: 33.5
07:00 GE JUL Industrial Production (MoM) exp: 0.3% prev: -1.5%
07:45 FR JUL Trade Balance (M) exp: -4308 prev: -5187
10:00 EC 2Q F Euro-Zone: GDP (QoQ) exp: 0.23% prev: 0.2%
13:30 US AUG Change in Manufact. Payrolls (k) exp: 5 prev: 16
13:30 US AUG Change in Nonfarm Payrolls (k) exp: 164 prev: 164
13:30 US AUG Unemployment Rate exp: 3.7% prev: 3.7%

U.S. indices rallied on Thursday helped by shares in the Semiconductors & Semiconductor Equipment (+2.95%), Consumer Durables & Apparel (+2.54%) and Banks (+2.46%) sectors. Crude oil inventories slid 4.8 million barrels to 423 million barrels, the lowest since October 2018 which helped bid up Crude prices intraday. On the economic data front, ADP private employment increased 195K in August (vs. +148K estimated, +142K in July). Jobless claims increased to 217K in the week ending August 31 (vs. 215K estimated) from 216K in the prior week. Factory Orders increased 1.4% MoM in July (vs. +1.0% estimated). Finally, final readings of Markit Services PMI posted 50.7 in August (vs. 50.9 preliminary). The S&P 500 (2,976.00) trades above its 20d moving average (2,903.41 – positive slope) and breaks above its 50d moving average (2,945.19 – positive slope).

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

BRENT Crude Technical Snap (Daily)

Pivot: 60.35 Our preference: long positions above 60.35 with targets at 61.15 & 61.65 in extension. Alternative scenario: below 60.35 look for further downside with 59.95 & 59.55 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Today’s Economic Events

13:15 US AUG ADP Employment Report (k) exp: 147 prev: 156
13:30 US 2Q F Nonfarm Productivity exp: 2.2% prev: 2.3%
13:30 US 2Q F Unit Labor Costs exp: 2.4% prev: 2.4%
13:30 US W34 Initial Jobless Claims (k) exp: 215 prev: 215
14:45 US AUG F Markit Composite PMI exp: NA prev: 50.9
14:45 US AUG F Markit Services PMI exp: 50.9 prev: 50.9
15:00 US AUG ISM – Non Manufacturing exp: 53.9 prev: 53.7
15:00 US JUL F Durable Goods Ex Transportation exp: NA prev: -0.4%
15:00 US JUL F Durable Goods Orders exp: NA prev: 2.1%
15:00 US JUL Factory Orders exp: 1% prev: 0.6%
16:00 US W34 Crude Oil Inventories (WoW chg) exp: -2935 prev: -10027 read more

U.S. indices joined a global rally on Wednesday fuelled by positive economic news out of China and Hong Kong’s decision to withdrawal its extradition bill. Crude oil gained the most since June after the U.S. announced plans for further sanctions on Iran and comments from Russia regarding production cuts. The best performing stocks were in the Semiconductors & Semiconductor Equipment (+3.06%), Automobiles & Components (+2.64%) and Consumer Durables & Apparel (+2.07%) sectors. Looking at Thursday, Lululemon Athletica (LULU) is anticipated to report 2Q earning after the close. The Federal Reserve released its Beige Book stating the economy grew moderately through the end of August. Even as tariffs and trade policy threaten the U.S. economy, the majority of businesses have bullish outlooks for the near future. Manufacturing activity is down from the previous report. The China trade war tariffs have put pressure on retailers and manufacturers as input costs have slightly increased. On the economic data front, U.S. trade deficit amounted to $54.0B in July (vs. $53.4B expected). The S&P 500 (2,944.01) trades above its 20d moving average (2,898.81 – positive slope) but stays below its 50d moving average (2,944.01 – flat slope).

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

BRENT Crude Technical Snap (Daily)

Pivot: 58.10 Our preference: long positions above 58.10 with targets at 58.85 & 59.25 in extension. Alternative scenario: below 58.10 look for further downside with 57.65 & 57.25 as targets. Comment: the RSI is bullish and calls for further upside.

Today’s Economic Events

US AUG Total Vehicule Sales (M) exp: 16.8 prev: 16.8
08:50 FR AUG F Markit Composite PMI exp: 52.8 prev: 52.7
08:50 FR AUG F Markit Services PMI exp: 53.3 prev: 53.3
09:00 EU AUG F Markit Composite PMI exp: 51.9 prev: 51.8
09:00 EU AUG F Markit Services PMI exp: 53.4 prev: 53.4
10:00 EC JUL Euro-Zone: Retail Trade (MoM) exp: -0.4% prev: 1.1%
13:30 US JUL Trade Balance (B USD) exp: -54.3 prev: -55.2

U.S. indices closed lower on Tuesday pressured by shares in the Semiconductors & Semiconductor Equipment (-1.71%), Capital Goods (-1.58%) and Banks (-1.49%) sectors. On the economic data front, the ISM manufacturing PMI dropped to 49.1 in August (vs. 51.3 estimated) from 51.2 in July, a fourth straight month of decline. The Markit U.S. manufacturing PMI was confirmed at 50.3 in August (vs. 50.0 expected and 49.9 preliminary). Finally, construction spending increased 0.1% MoM in July (vs. +0.3% expected). The S&P 500 (2,906.27) trades above its 20d moving average (2,896.01 – flat slope) but stays below its 50d moving average (2,944.17 – flat slope).

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