Real time trading in Polymers, Base Oils, TiO2 and Nanomaterials
Today’s Economic Events
07:45 FR OCT Business Confidence Indicator exp: 101.6 prev: 102.4
07:45 FR OCT Production Outlook Indicator exp: NA prev: 4.1
15:00 EC OCT A Euro-Zone: Consumer Confidence exp: -6.7 prev: -6.5
15:30 US W41 Crude Oil Inventories (WoW chg) exp: NA prev: 9281
US indices closed lower in late trading Tuesday pressured by shares in the Consumer Services (-2.74%), Software & Services (-2.19%) and Insurance (-1.75%) sectors. U.K. lawmakers rejected a limited time frame to review a deal on Brexit. This makes an Oct. 31 deadline extension more likely. The S&P 500 (2,995.99) remains above its 20d moving average (2,959.48 – positive slope) and 50d moving average (2,948.80 – positive slope).
On the economic data front, Existing Home Sales fell to 5.38 million missing the 5.45 million estimate for September, down from a revised 5.50 million the prior month. On Wednesday, economists expect MBA Mortgage Applications for the week ended October 18th and The Federal Housing Finance Agency House Price Index month over month change is expected to rise 0.3% for August, from a prior rise of 0.4%.
European markets are expected to start on a negative note.
EMEA Base Oil Price Report
BY RAY MASSON
Group I prices remain under pressure. Even against a backdrop of producers cutting run rates and a number of refineries in turnaround, Group I supplies are meeting all current requirements. Export markets are still susceptible to alternative sources such as the United States, where prices appear to be exceptionally keen, stymieing European exports.
Group II prices also appear to be coming under pressure. Buyers are aware of the large price difference between Group II and Group I, and with European price levels higher compared to global values, this price delta is coming under scrutiny by the market. At the same time there is increasing length in the Group II market with new offers from the U.S. and Far East appearing daily on the market. These range from small quantities in flexitanks to larger bulk shipments, all of which are eroding the local market for Group II.
BRENT Crude Technical Snap (Daily)
| Pivot: 59.25 Our preference: short positions below 59.25 with targets at 58.60 & 58.25 in extension. Alternative scenario: above 59.25 look for further upside with 59.55 & 59.85 as targets. Comment: the RSI is above its neutrality area at 50% but reversing down. |
Today’s Economic Events
09:30 UK SEP Public Finances (PSNCR) (B GBP) exp: NA prev: 6.4
09:30 UK SEP Public Sector Net Borrowing (B GBP) exp: NA prev: 5.8
15:00 US SEP Existing Home Sales (M) exp: 5.5 prev: 5.5
US indices closed higher on Monday lifted by shares in the Banks (+2.02%), Transportation (+1.91%), Energy (+1.86%) sectors. The S&P 500 is less than 1% away from record highs, a key resistance area for traders. On the economic data front, their was no major data released. The S&P 500 (3,006.72) remains above its 20d moving average (2,958.01 – flat slope) and 50d moving average (2,946.54 – positive slope).
On Tuesday, economists expect Existing Home Sales to release at 5.45 million for September, down from 5.49 million the prior month. The Monthly Budget Statement for September is anticipated to be released between October 22nd and October 25th at 83 billion dollars, down from 119.1 billion dollars in August.
European markets are expected to start on a flat note.
BRENT Crude Technical Snap (Daily)
| Pivot: 59.60 Our preference: short positions below 59.60 with targets at 59.00 & 58.70 in extension. Alternative scenario: above 59.60 look for further upside with 59.90 & 60.25 as targets. Comment: as long as the resistance at 59.60 is not surpassed, the risk of the break below 59.00 remains high. |
Today’s Economic Events
US SEP Monthly Budget Satement (B USD) exp: 85 prev: -200
07:00 GE SEP Producer Price Index (MoM) exp: 0% prev: -0.5%
US indices closed lower on Friday pressured by declines in Boeing, Netflix and Johnson & Johnson. The worst performing stocks were in the Media (-1.5%), Software & Services (-1.36%) and Semiconductors & Semiconductor Equipment (-1.2%) sectors.
On the economic data front, the U.S. Leading Index fell 0.1% on month in September (+0.0% expected,, -0.2% in August).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, the US Leading Index fell -0.1% missing the unchanged (0.0%) estimate for September, up from a revised -0.2% from unchanged (0.0%) in August. Next week, economists expect the Monthly Budget Statement to be released between October 21st and October 25th at 83 billion dollars, down from 119.1 billion dollars in August.
The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and GBP. In Europe, their was no major economic data released.
The Australian dollar was bullish against most of its major pairs with the exception of the GBP.
BRENT Crude Technical Snap (Daily)
| Pivot: 59.40 Our preference: long positions above 59.40 with targets at 60.05 & 60.35 in extension. Alternative scenario: below 59.40 look for further downside with 59.10 & 58.80 as targets. Comment: the RSI calls for a bounce. |