Month: October 2019

BRENT Crude Technical Snap (Daily)

Pivot: 61.40 Our preference: long positions above 61.40 with targets at 62.50 & 62.90 in extension. Alternative scenario: below 61.40 look for further downside with 60.95 & 60.65 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Today’s Economic Events

07:00 GE SEP Import Prices (MoM) exp: 0.1% prev: -0.6%
12:30 US SEP P Wholesale Inventories exp: NA prev: 0.2%

US indices closed higher on Friday with the Nasdaq index hitting a record high lifted by shares in the Semiconductors & Semiconductor Equipment (+3.44%), Automobiles & Components (+1.69%) and Transportation (+1.61%) sectors. The S&P 500 (3,022.55) remains above its 20d moving average (2,965.13 – positive slope) and 50d moving average (2,957.26 – positive slope).

On the economic data front, the University of Michigan Consumer Sentiment Index released at 95.5, which was slightly below the 96.0 estimate for the October final reading, down from 96.0 in the prior reading. On Monday, economists expect Wholesale Inventories month over month change to be up 0.3% for the September preliminary reading, from 0.2% in the prior reading.

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

BRENT Crude Technical Snap (Daily)

Pivot: 61.00 Our preference: long positions above 61.00 with targets at 61.65 & 61.90 in extension. Alternative scenario: below 61.00 look for further downside with 60.65 & 60.25 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Today’s Economic Events

07:45 FR SEP Producer Price Index (MoM) exp: NA prev: 0%
09:00 GE OCT IFO – Business Climate exp: 94.5 prev: 94.6
09:00 GE OCT IFO – Current Assessment exp: 97.3 prev: 98.5
09:00 GE OCT IFO – Expectations exp: 91.8 prev: 90.8
15:00 US OCT F U. of Michigan Confidence exp: 96 prev: 96

US indices closed relatively flat on Thursday amid the busiest earnings release day of the quarter. Shares in the Software & Services (+2.15%), Semiconductors & Semiconductor Equipment (+2.01%) and Household & Personal Products (+1.22%) sectors traded higher while shares in the Automobiles & Components (-3.13%), Telecommunication Services (-1.46%) and Health Care Equipment & Services (-0.64%) sectors were under pressure. The S&P 500 (3,010.29) remains above its 20d moving average (2,962.09 – positive slope) and 50d moving average (2,953.76 – positive slope).

The U.S. Commerce Department reported that durable good orders fell 1.1% on month in September (-0.7% expected). The Markit U.S. manufacturing purchasing managers’ index posted 51.5 (preliminary) in October (50.9 expected, 51.1 in September). New home sales dropped to an annualized rate of 701,000 in September (702,000 units expected, 706,000 units in August). The Labor Department said initial jobless claims declined to 212,000 (215,000 expected) for the week ended October 19 from 218,000 in the prior week.

Later today, economists expect the University of Michigan Consumer Sentiment Index to be flat at 96 in October.

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

BRENT Crude Technical Snap (Daily)

Pivot: 60.25 Our preference: long positions above 60.25 with targets at 61.30 & 61.65 in extension. Alternative scenario: below 60.25 look for further downside with 59.75 & 59.30 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited

Today’s Economic Events

08:15 FR OCT P Markit Composite PMI exp: 51.1 prev: 50.8
08:15 FR OCT P Markit Manufacturing PMI exp: 50.2 prev: 50.1
08:15 FR OCT P Markit Services PMI exp: 51.6 prev: 51.1
09:00 EU OCT P Markit Composite PMI exp: 50.3 prev: 50.1
09:00 EU OCT P Markit Manufacturing exp: 45.9 prev: 45.7
09:00 EU OCT P Markit Services PMI exp: 51.8 prev: 51.6
12:45 EC ECB: Rates decision exp: 0% prev: 0%
13:30 US SEP P Durable Goods Ex Transportation exp: -0.2% prev: 0.5%
13:30 US SEP P Durable Goods Orders exp: -0.8% prev: 0.2%
13:30 US W41 Initial Jobless Claims (k) exp: 214 prev: 214
14:45 US OCT P Markit Composite PMI exp: NA prev: 51
14:45 US OCT P Markit Manufacturing PMI exp: 50.8 prev: 51.1
14:45 US OCT P Markit Services PMI exp: 51 prev: 50.9
15:00 US SEP New Home Sales (k) exp: 702 prev: 713 read more

US indices closed slightly higher on Wednesday lifted by shares in the Household & Personal Products (+0.98%), Media (+0.94%) and Technology Hardware & Equipment (+0.85%) sectors. On the economic data front, MBA Mortgage Applications fell 11.9% for the week ended October 18th, down from a rise of 0.5% the prior week, marking a low not reached since late 2016. The U.S. Federal Housing Finance Agency house price index added 0.2% on month in August (+0.3% expected, +0.4% in July). The S&P 500 (3,004.52) remains above its 20d moving average (2,960.46 – positive slope) and 50d moving average (2,950.36 – positive slope).

On Thursday, economists expect the durable good orders to declined 0.8% on month in September, new home sales to drop 0.7% on month, and the Markit U.S. manufacturing purchasing managers’ index to post 50.7 for October. Initial jobless claims for the week ended October 19 are anticipated to be lower at 215,000.

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

BRENT Crude Technical Snap (Daily)

Pivot: 59.15 Our preference: long positions above 59.15 with targets at 59.85 & 60.25 in extension. Alternative scenario: below 59.15 look for further downside with 58.75 & 58.45 as targets. Comment: the RSI lacks downward momentum.