Real time trading in Polymers, Base Oils, TiO2 and Nanomaterials
BRENT Crude Technical Snap (Daily)
| Pivot: 69.50 Our preference: long positions above 69.50 with targets at 70.90 & 71.30 in extension. Alternative scenario: below 69.50 look for further downside with 69.00 & 68.45 as targets. Comment: the RSI calls for a rebound. |
Today’s Economic Events
07:00 GE MAR Industrial Production (MoM) exp: -0.6% prev: 0.7%
15:30 US W17 Crude Oil Inventories (WoW chg) exp: NA prev: 9934
U.S. indices closed lower on Tuesday as the Dow fell by appx 475 points. Technology Hardware & Equipment (-2.43%), Semiconductors & Semiconductor Equipment (-2.31%) and Pharmaceuticals, Biotechnology & Life Sciences (-2.17%) sectors were under pressure. The S&P 500 (2,884.05) broke below its 20d moving average (2,915.37 – flat slope) but remains above 50d moving average (2,856.75 – positive slope).
European markets are expected to start on a negative note.
Foreign Exchange
BRENT Crude Technical Snap (Daily)
| Pivot: 70.70 Our preference: long positions above 70.70 with targets at 71.75 & 72.30 in extension. Alternative scenario: below 70.70 look for further downside with 70.05 & 69.50 as targets. Comment: the RSI has just landed on its neutrality area at 50% and is turning up. |
Today’s Economic Events
07:45 FR MAR Trade Balance (M) exp: NA prev: -4002
20:00 US MAR Consumer Credit (B USD) exp: 16.9 prev: 15.2
U.S. indices closed lower on Monday after President Trump tweeted that he will increase tariffs on $200B worth of Chinese goods from 10% to 25% on Friday. Shares in the Consumer Durables & Apparel (-1.63%), Semiconductors & Semiconductor Equipment (-1.52%) and Technology Hardware & Equipment (-1.38%) sectors took a hit while shares in the Health Care Equipment & Services (+1.13%), Food & Staples Retailing (+0.39%) and Pharmaceuticals, Biotechnology & Life Sciences (+0.17%) sectors gained a bit of strength. The S&P 500 (2,932.47) stays above both its 20d moving average (2,915.96 – positive slope) and 50d moving average (2,854.99 – positive slope).
European markets are expected to open on a negative note.
BRENT Crude Technical Snap (Daily)
| Pivot: 71.15 Our preference: short positions below 71.15 with targets at 69.65 & 69.35 in extension. Alternative scenario: above 71.15 look for further upside with 71.60 & 72.00 as targets. Comment: the RSI has just struck against its neutrality area at 50% and is reversing down. |
Today’s Economic Events
US APR Average Hourly Earnings (MoM) exp: NA prev: 0.3%
US APR Average Weekly Hours exp: NA prev: 33.7
10:00 EC MAR Euro-Zone: PPI (MoM) exp: 0.1% prev: 0.1%
13:30 US APR Change in Manufact. Payrolls (k) exp: 10 prev: -6
13:30 US APR Change in Nonfarm Payrolls (k) exp: 187 prev: 196
13:30 US APR Unemployment Rate exp: 3.8% prev: 3.8%
13:30 US MAR P Wholesale Inventories exp: 0.6% prev: 0.2%
14:45 US APR F Markit Composite PMI exp: NA prev: 52.8
14:45 US APR F Markit Services PMI exp: 52.8 prev: 52.9
15:00 US APR ISM – Non Manufacturing exp: 56.9 prev: 56.1
US indices closed mixed on Thursday. Shares in the Energy (-1.71%), Automobiles & Components (-1.14%) and Software & Services (-0.9%) sectors felt some pressure while shares in the Semiconductors & Semiconductor Equipment (+0.72%), Household & Personal Products (+0.66%) and Health Care Equipment & Services (+0.6%) sectors were on the rise. On the economic data front, initial jobless claims remained unchanged WoW at 230k in week ended April 27th (estimated 215k) while continuing claims slightly increased to 1.671M in week ended April 20th (forecasted 1.66M) compared to 1.654M the prior week. Also, factory orders improved by 1.9% in March (expected 1.6%) from -0.3% a month earlier while durable goods orders advanced by 2.6% in March vs. a decline of 1.6% in February. Finally, the Bloomberg consumer comfort index slightly decreased to 60.4 in week ended April 28th from 60.8 a week earlier. The S&P 500 (2,917.52) stays above both its 20d moving average (2,910.66 – positive slope) and 50d moving average (2,848.78 – positive slope).
European markets are expected to start on a flat note.
Base oil prices across Europe, the Middle East and Africa remain weak with continuing pressure from a general oversupply affecting all sectors to varying degrees.
Group I numbers are under twofold pressures, one being plentiful availabilities of all grades. The other is that prices have been depressed to the point where refiners are considering whether or not to continue producing, at least at current levels. Rising crude and feedstock costs are squeezing margins, and sellers are unable to respond to raise prices due to generous availabilities.