Real time trading in Polymers, Base Oils, TiO2 and Nanomaterials
BRENT Crude Technical Snap (Daily)
| Pivot: 70.30 Our preference: long positions above 70.30 with targets at 71.30 & 71.80 in extension. Alternative scenario: below 70.30 look for further downside with 70.10 & 69.65 as targets. Comment: the RSI calls for a rebound. |
Today’s Economic Events
No major economic report expected
U.S. indices closed mixed to finish the week on Friday. Shares in the Technology Hardware & Equipment (-1.02%), Pharmaceuticals, Biotechnology & Life Sciences (-0.18%) and Retailing (-0.08%) sectors closed lower while shares in the Utilities (+1.74%), Food & Staples Retailing (+1.56%) and Insurance (+1.35%) sectors ended positively. On the economic data front, CPI rose 2.0% YoY in April (estimated +2.1%, +1.9% in March) and core CPI grew 2.1% (as expected, +2.0% in March). In other news, monthly budget posted $160.3B in April (expected $160.5B). The S&P 500 (2,881.40) stays below its 20d moving average (2,914.21 – flat slope) but remains above 50d moving average (2,861.97 – positive slope).
European markets are expected to start on a flat note.
BRENT Crude Technical Snap (Daily)
| Pivot: 71.20 Our preference: short positions below 71.20 with targets at 69.95 & 69.40 in extension. Alternative scenario: above 71.20 look for further upside with 71.80 & 72.30 as targets. Comment: as long as 71.20 is resistance, look for choppy price action with a bearish bias. |
Today’s Economic Events
07:00 GE MAR Current Account (B EUR) exp: 24.3 prev: 16.3
07:00 GE MAR Exports (MoM) exp: -0.3% prev: -1.2%
07:00 GE MAR Imports (MoM) exp: 0.3% prev: -1.6%
07:00 GE MAR Trade Balance (B EUR) exp: 19.8 prev: 18
07:45 FR 1Q P Wages (QoQ) exp: 0.4% prev: 0.2%
09:30 UK 1Q P GDP (QoQ) exp: 0.5% prev: 0.2%
09:30 UK MAR Industrial Production (MoM) exp: 0.1% prev: 0.6%
09:30 UK MAR Manufacturing Production (MoM) exp: 0% prev: 0.9%
09:30 UK MAR Trade Balance in Goods (M GBP) exp: -13882 prev: -14112
09:30 UK MAR Trade Balance Non EU (M GBP) exp: -5526 prev: -5841
13:30 US APR Consumer Price Index (MoM) exp: 0.4% prev: 0.4%
13:30 US APR CPI – Ex Food & Energy (MoM) exp: 0.2% prev: 0.1%
19:00 US APR Monthly Budget Satement (B USD) exp: 169 prev: -147
U.S. indices closed lower on Thursday, pressured by shares in the Semiconductors & Semiconductor Equipment (-1.84%), Automobiles & Components (-1.64%) and Technology Hardware & Equipment (-0.97%) sectors. On the economic data front, the U.S. trade deficit amounted to $50.0B in March (estimated $50.1B). Also, PPI rose 2.2% YoY in April (vs +2.3% expected, +2.2% in March) and wholesale inventories fell 0.1% MoM in March (expected to remain flat). In other news, initial jobless claims slightly dropped to 228K in week ended May 4 (estimated 220kK) from 230K in the prior week while continuing claims rose to 1.684M in week ended April 27th (forecasted 1.67M) from 1.671M a week earlier. The S&P 500 (2,870.72) stays below its 20d moving average (2,914.56 – flat slope) but remains above 50d moving average (2,860.03 – positive slope).
European markets are expected to start on a flat note.
BRENT Crude Technical Snap (Daily)
| Pivot: 69.55 Our preference: long positions above 69.55 with targets at 70.10 & 70.70 in extension. Alternative scenario: below 69.55 look for further downside with 69.15 & 68.80 as targets. Comment: the RSI is mixed and calls for caution. |
Today’s Economic Events
13:30 US APR PPI – Ex Food & Energy (MoM) exp: 0.2% prev: 0.3%
13:30 US APR Producer Price Index (MoM) exp: 0.3% prev: 0.6%
13:30 US MAR Trade Balance (B USD) exp: -50.8 prev: -49.4
13:30 US W17 Initial Jobless Claims (k) exp: 220 prev: 230
15:00 US MAR F Wholesale Inventories exp: 0.1% prev: 0%
U.S. indices closed mixed on Wednesday. Shares in the Utilities (-1.38%), Semiconductors & Semiconductor Equipment (-1.2%) and Telecommunication Services (-0.58%) sectors were in the red while shares in the Household & Personal Products (+0.29%), Health Care Equipment & Services (+0.22%) and Software & Services (+0.14%) sectors ended on a positive note. The S&P 500 (2,879.42) stays below its 20d moving average (2,915.44 – flat slope) but remains above 50d moving average (2,856.46 – positive slope).
European markets are expected to start on a negative note.
Base oil prices reportedly remain under downward pressure throughout Europe, the Middle East and Africa as buyers appear to have the upper hand.
Given the number of recent and upcoming holidays, though, markets may require a few weeks of settling before showing reliable signs of where values are headed. Easter and related holidays have passed both in Russia and elsewhere in Europe, while Ramadan is now beginning for Muslim communities in the Middle East Gulf and parts of Africa.
Group I levels are under the microscope because of margins being squeezed and aggressive countering from buyers. Group II prices are still being eroded but perhaps not as fast as over the past six weeks. In the Group III segment, all grades are under downward pressure as supply increases.