Author: Specialist

U.S. indices started Tuesday under pressure but rebounded off their lows following a report that China was considering a deal to purchase more U.S. agricultural goods ahead of the next trade meeting. Bond yields rallied into the close. Shares in the Telecommunication Services (+1.91%), Banks (+1.3%) and Energy (+1.29%) sectors traded higher while shares in the Commercial & Professional Services (-2.13%), Consumer Services (-1.92%) and Household & Personal Products (-1.82%) sectors saw downside pressure. Looking at crude oil, prices rallied to intraday highs before tanking after President Trump fired U.S. security adviser John Bolton which may ease tensions between the U.S. and Iran regarding Oil transport in the Strait. On the economic data front, the NFIB Small Business Optimism fell to 103.1 (expected 103.5) in August, the lowest level in four months, from 104.7 in July. Looking into Wednesday, traders will be eyeing key economic data regarding mortgage applications, PPI and wholesale inventories before the market opens. The S&P 500 (2,979.39) trades above its 20d moving average (2,913.25 – positive slope) and its 50d moving average (2,948.31 – positive slope).

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

EMEA Base Oil Price Report

Source: Lubes n’Greases

Base oil markets are steady this week, with few price pressures from the raw material side, given that fundamentals have remained relatively flat. There are pockets of activity developing, both in regional markets and also for export cargoes, which have been loaded for traditional receivers in markets such as West Africa.

Supply and demand of API Group are balanced, with reasonable availabilities of all grades, although some European sellers are not in a position to offer the full range of oils. Many bright stock producers are showing long positions with little uptake to clear stocks in tank. read more

BRENT Crude Technical Snap (Daily)

Pivot: 62.40 Our preference: long positions above 62.40 with targets at 63.25 & 64.00 in extension. Alternative scenario: below 62.40 look for further downside with 61.65 & 61.10 as targets. Comment: the break above 62.40 is a positive signal that has opened a path to 63.25.

Today’s Economic Events

09:30 UK JUL Unemployment Rate (ILO) exp: 3.9% prev: 3.9%

U.S. indices closed mixed on Monday. Shares in the Banks (+3.15%), Automobiles & Components (+2.27%) and Energy (+1.85%) sectors traded higher while shares in the Software & Services (-1.58%), Commercial & Professional Services (-1.26%) and Household & Personal Products (-1.18%) sectors were in the red. On the economic data front, consumer credit increased $23.29B in July (vs. +$16.00B expected). The S&P 500 (2,978.43) trades above its 20d moving average (2,908.43 – positive slope) and its 50d moving average (2,947.55 – positive slope).


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

BRENT Crude Technical Snap (Daily)

Pivot: 61.15 Our preference: long positions above 61.15 with targets at 62.40 & 63.25 in extension. Alternative scenario: below 61.15 look for further downside with 60.65 & 60.10 as targets. Comment: the RSI is bullish and calls for further advance.

Today’s Economic Events

07:00 GE JUL Current Account (B EUR) exp: NA prev: 20.6
07:00 GE JUL Exports (MoM) exp: -0.6% prev: -0.1%
07:00 GE JUL Imports (MoM) exp: 0% prev: 0.7%
07:00 GE JUL Trade Balance (B EUR) exp: 16.1 prev: 16.6
09:30 UK JUL Industrial Production (MoM) exp: -0.2% prev: -0.1%
09:30 UK JUL Manufacturing Production (MoM) exp: -0.3% prev: -0.2%
09:30 UK JUL Trade Balance in Goods (M GBP) exp: -1543757624 prev: -7009
09:30 UK JUL Trade Balance Non EU (M GBP) exp: NA prev: -186
20:00 US JUL Consumer Credit (B USD) exp: 16.2 prev: 14.6 read more

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%