Author: Specialist

Today’s Economic Events

09:30 UK SEP Public Finances (PSNCR) (B GBP) exp: NA prev: 3.1
09:30 UK SEP Public Sector Net Borrowing (B GBP) exp: 4.3 prev: 5.9
15:00 US SEP Existing Home Sales (M) exp: 5.3 prev: 5.3

General Market Comment

US indices closed lower on Thursday as the Dow and Nasdaq finished lower for the 8th time in 11 sessions. Shares in the Media (-2.42%), Retailing (-2.37%) and Automobiles & Components (-2.34%) sectors dragged the market lower. On the economic data front, initial jobless claims reached 210k in week ended October 13th (estimated 211k) from 215k in the previous week. Continuing claims declined to 1.64M in week ended October 6th (forecasted 1.663M) compared to 1.653M a week earlier. The Philadelphia Federal Business Outlook index survey slightly diminished to 22.2 in October (expected 20) from 22.9 in September. The Bloomberg consumer comfort index improved to 60.8 in week ended October 14th vs. 59.5 in the prior week. Finally, the Leading Index advanced by 0.5% in September, aligned with expectations, compared to 0.4% in August. The S&P 500 (2,768.78) remains at levels below both its 20d moving average (2,862.20 – negative slope) and 50d moving average (2,871.13 – negative slope). read more

Commodity Closing – Europe/Oil-Gas Majors 18.10.18

Oil prices pared losses on Thursday as U.S. stocks bounced off session lows and a report showed a smaller-than-expected build in crude inventory levels at the U.S. oil storage hub Cushing.

Today’s Economic Events

07:00 GE SEP Wholesale Price Index (MoM) exp: NA prev: 0.3%
09:30 UK SEP Retail Sales (MoM) exp: -0.5% prev: 0.3%
13:30 US OCT Philadelphia Fed. exp: 20.9 prev: 22.9
13:30 US W40 Initial Jobless Claims (k) exp: 212 prev: 214
15:00 US SEP Leading Indicators exp: 0.5% prev: 0.4%

General Market Comment

US indices closed lower on Wednesday, pressured by shares in the Consumer Durables & Apparel (-1.25%), Retailing (-1.01%) and Materials (-0.83%) sectors. On the economic data front, mortgage applications fell by 7.1% in week ended October 12th from a decline of 1.7% in the previous week. Housing starts diminished by 5.3% MoM to 1.201M units in September (estimated 1.21M) from 1.268M units in the prior month. In other news, building permits slightly lowered to 1.241M in September (forecasted 1.275M) vs. 1.249M a month earlier. Finally, The Federal Reserve released the minutes of the FOMC meeting that concluded on September 26th: Some participants are worried that the growth of leveraged loans in the nonbank sector may pose a risk to financial stability while other participants are concerned with the historical pattern of the inverted yield curve which has often preceded recessions in the U.S.. In order to keep inflation below the objective of 2%, participants agreed that it might be necessary to temporarily raise the federal funds rate “above their assessments of its longer-run level”. The S&P 500 (2,809.21) remains at levels below both its 20d moving average (2,870.25 – negative slope) and 50d moving average (2,872.90 – negative slope). read more

Commodity Closing – Europe/Oil-Gas Majors 17.10.18

OPEC has urged its members not to mention oil prices when discussing policy in a break from the past, as the oil producing group seeks to avoid the risk of U.S. legal action for manipulating the market, sources close to OPEC said.

Today’s Economic Events

09:30 UK SEP CPI – EU Harmonised (MoM) exp: 0.2% prev: 0.7%
09:30 UK SEP PPI – Input (MoM) exp: 0.9% prev: 0.5%
09:30 UK SEP PPI – Output (MoM) exp: 0.2% prev: 0.2%
10:00 EC SEP Euro-Zone: CPI (MoM) exp: 0.5% prev: 0.5%
13:30 US SEP Bulding Permits (k) exp: 1270 prev: 1249
13:30 US SEP Housing Starts (k) exp: 1213 prev: 1282
15:30 US W40 Crude Oil Inventories (WoW chg) exp: NA prev: 5987
19:00 US SEP 26 Minutes FOMC Meeting exp: prev:

General Market Comment

US indices closed higher on Tuesday as the Nasdaq was the biggest winner with a 2.89% jump. Shares in the Software & Services (+3.38%), Health Care Equipment & Services (+3.28%) and Semiconductors & Semiconductor Equipment (+3.21%) sectors closed in the green zone. On the economic data front, industrial production increased by 0.3% MoM in September (estimated 0.2%) from an increase of 0.4% in August. In other news, Capacity Utilization remained unchanged YoY at 78.1% in September, slightly lower than expectations of 78.2%. The S&P 500 (2,809.92) remains at levels below both its 20d moving average (2,875.23 – negative slope) and 50d moving average (2,873.89 – negative slope). read more

Commodity Closing – Europe/Oil-Gas Majors 16.10.18

Oil prices rose in cautious trade on Tuesday as expectations of higher U.S. shale output and inventories vied with worries that crude supply from the Middle East could be disrupted by looming U.S. sanctions on Iran and growing tensions with top producer Saudi Arabia.

EMEA Base Oil Price Report

BY RAY MASSON

Loose availability continues to hold back prices for many base oils throughout Europe, the Middle East and African. Expanding supply and weak demand are squeezing margins for API Group I oils, while the flow of Group II in Europe continues to swell.

Given their inability to raise prices, a number of refiners are reckoned to be cutting Group I production in favor of diesel and jet fuel, and this may affect year-end sales.

Crude oil and feedstock costs continued their retreat this week, as dated deliveries of Brent crude posted yesterday at $80.30 per barrel for December settlement and West Texas Intermediate dipped to $70.30/bbl for November front month. ICE LS gas oil fell around $25 per metric ton to $711 per metric ton, also for November front month. These prices were from London ICE trading late Monday. read more