Tag Archives: Brent

USD Off To Slower Start In August

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Dollar Gets Off To Slower Start In August

The U.S. dollar got off to a cooler start today after experiencing its biggest one-day fall in almost a month after a series of economic data led markets to push back expectations for the start of the Federal Reserve’s rate-tightening cycle. U.S. jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that may indicate the Fed will keep interest rates low for longer. The dollar index was last at 81.321 .DXY having retreated from a 10 1/2 month peak of 81.573. It had fallen 0.2 percent on Friday, a modest decline but still the biggest one-day fall in over three weeks. The index had rallied more than 2 percent in July as improving U.S. data convinced markets that an interest rate rise could be less than 12 months away. That allowed the euro to push back above $1.3400 EUR and off an eight month trough of $1.3366 plumbed last week. Against the yen, the dollar recoiled to 102.56 JPY, having stretched to a near four-month high of 103.15.

S&P 500 Sees Biggest Weekly Decline Since 2012

Data showing U.S. job growth eased off in July and the unemployment rate unexpectedly rose suggests that the Federal Reserve may keep interest rates low for a while. The jobs growth, which came in below economists’ forecasts, relieved some investors worried about how soon the Fed could increase interest rates after data on Thursday showed U.S. labour costs recorded their biggest gain in more than 5 1/2 years in the second quarter. Seven of the 10 S&P 500 sectors ended lower with S&P financials among sectors with the biggest losses. The Dow Jones industrial average fell 69.93 points to 16,493.37, the S&P 500 lost 5.52 points to 1,925.15 and the Nasdaq Composite dropped 17.13 points to 4,352.64. For the week, the S&P 500 fell 2.7 percent, its biggest weekly percentage loss since the week ending June 1, 2012. The Dow ended down 2.8 percent for the week, while the Nasdaq fell 2.2 percent. The Dow’s losses pulled it deeper into negative territory and is consequently down 0.5 percent for the year to date.

WTI Trades Near Six-Month Low Before Economic Data

West Texas Intermediate crude traded near the lowest price in six months before data that will signal the strength of the economy in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures were little changed in New York after capping the biggest weekly decline in seven months on Aug. 1. The Markit Economics purchasing managers index for U.S. services is due tomorrow, while factory order data is also scheduled this week. WTI for September delivery was at $98 a barrel in electronic trading on the New York Mercantile Exchange, up 12 cents. The contract slid 0.3 percent to $97.88 on Aug. 1, the lowest close since Feb. 6. The volume of all futures traded was about 1.3 percent above the 100-day average. Prices are down 0.5 percent this year. Brent for September settlement rose 21 cents to $105.05 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.08 to WTI. It closed at $6.96 on Aug. 1.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Investors Look To U.S. On Europe Concerns

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Pending Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Investors Look To U.S. On Europe Concerns

As the prospect of tougher sanctions against Russia impacts on confidence in Europe, investors will be looking to the United States and China to underpin the global economy. Wednesday’s U.S. GDP reading and jobs data on Friday will help markets assess the strength of the economy’s rebound and the speed of the Federal Reserve’s return to more conventional monetary policy. In Europe, the downing of a Malaysia Airlines airliner over the Ukraine has left countries such as Germany with little choice but to change their long-passive stance and impose tougher sanctions on Moscow. European Union ambassadors are expected to meet early this week to finalise sanctions that could include closing EU capital markets to state-owned Russian banks, placing an embargo on arms sales and restricting supply of energy technology. Globally, such sanctions would hurt Europe hardest, where Russia does most trade, compounding economic problems for Russia and throughout the region. The International Monetary Fund has already flagged the ‘chilling effect’ on investment in Russia of sanctions as it pared back its forecast for global economic growth last week. Confidence amongst businesses in Germany, which accounts for more than one quarter of all exports across the European Union, has dipped further since the plane crash. The crisis comes at a delicate moment for the 18 countries using the euro, where a fledgling recovery is losing pace. Investors will get a snapshot of the bloc’s inflation rate, which has sunk well below the European Central Bank’s target on Thursday.

Dollar Index Holds Close To Six Month Peak

The U.S. dollar hovered near six month highs against a basket of major currencies on Monday, holding onto solid gains made last week as investors turned bearish on the euro. This was ahead of key U.S. economic data later this week and a U.S. Federal Reserve meeting ending on Wednesday which market-watchers believe is likely to culminate in the same dovish message from Chair Janet Yellen.

The Commerce Department is expected to report on Wednesday that the economy grew at a 3.2 percent annual pace in the second quarter, after it shrank 2.9 percent in the previous quarter. On Friday, the Labor Department’s non-farm payrolls are expected to show a rise of 231,000 in July after they increased 288,000 in June. The jobless rate is expected to hold steady at 6.1 percent. Yellen said this month that the Fed could raise rates sooner than initially expected if labour markets continued to improve. Still, most economists expect the U.S. central bank to start raising interest rates in the second half of 2015. The dollar index was steady at 81.045, after it peaked at 81.084 on Friday, a high not seen since early February. So far this month, it has rallied around 1.6 percent, on track for its best monthly gain since January. Against its Japanese counterpart, the dollar was steady at 101.81 yen.

WTI Crude Declines In Advance Of U.S. Data

West Texas Intermediate crude fell for the fourth time in five days amid speculation that forthcoming economic data may signal a slowdown in growth in the U.S. Brent also dropped in London. Futures declined as much as 0.6 percent in New York. A preliminary index of U.S. service industries is forecast at 59.8 for July, the lowest level in three months. The Federal Reserve is scheduled to review monetary policy at a two-day meeting starting tomorrow. WTI for September delivery fell as much as 59 cents to $101.50 a barrel on the New York Mercantile Exchange to $101.59. The contract gained 2 cents to $102.09 on July 25. The volume of all futures traded was about 18 percent below the 100-day average. Prices are down 3.6 percent in July, the most in eight months. Brent for September settlement lost as much as 60 cents, or 0.5 percent, to $107.79 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.29 to WTI. The spread closed at $6.30 on July 25, the widest since July 7.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Apple Earnings: Investors Look For Signs Of What’s To Come

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD CPI @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Apple Earnings: Investors Look For Signs Of What’s To Come

With Apple Inc due to report its fiscal third-quarter earnings today, investors will be looking for hints on new market categories and launch dates that the company may be working on. In particular, investors will be specifically interested to see if Apple’s CEO Tim Cook relays any news about a possible smart-watch. Along with the company’s foray into wearables, investors will also be listening for clues about when the company plans to launch the iPhone 6 which would boost Apple’s gross margins. Product timing issues could, however, skew guidance thus sending shares lower. If this happens, investors should use that opportunity to look at buying shares and take advantage of buying on the weakness. The company is expected to post earnings of $1.23 per share on revenue of $37.98 billion in revenue.

Last quarter, Apple reported iPhones sales of 43.7 million, well ahead of the 37 million to 38 million iPhones analysts had expected. Since then the company has seen its share price soar more than 25 percent. Strong earnings results from some of Apple’s suppliers may mean the tech giant could post a positive surprise. For example, Skyworks posted 35 percent revenue growth year over year when it reported earnings last week and that could translate to good news for Apple.

WTI Rises for Second Day; Brent Gains

West Texas Intermediate rose for a second day before stockpile data that may signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent also increased in London. Futures climbed as much as 0.5 percent in New York. Crude inventories probably shrank by 2.8 million barrels last week, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow. WTI for August delivery, which expires today, gained as much as 56 cents to $105.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $104.59 yesterday, the highest level since July 1. September crude was up 45 cents at $103.31 at 12:14 p.m. Singapore time. The volume of all futures traded was about 77 percent above the 100-day average. Front-month prices have advanced 6.8 percent this year.

U.S. Stocks Finish Slightly Lower

U.S. stocks slipped yesterday as investors remained cautious about instability in Ukraine and Gaza, though the three major indexes ended well off their lows, a sign that some appetite for riskier assets remained. The S&P 500 fell as much as 0.6 percent, though it recovered most of those losses and closed above its 14-day moving average, suggesting buyers were using weakness to come back into the market. However, nine of the 10 primary S&P 500 sector indexes fell. The S&P energy sector index represented the only positive group, up 0.2 percent. Violence has escalated in the Gaza Strip and while the impact to the U.S. economy is seen as minimal, investors are concerned about the fallout from an extended period of increased violence and the prospect that it could spread to other parts of the Middle East. Market participants also kept watch on the uncertain situation in Ukraine. The Dow Jones industrial average fell 48.45 points or 0.28 percent, to end at 17,051.73. The S&P 500 declined 4.59 points or 0.23 percent, to finish at 1,973.63. The Nasdaq Composite dropped 7.44 points or 0.17 percent, to close at 4,424.70.

That sums up today’s highlights! Don’t forget to keep any eye for updates on today’s tradable events including Apple earnings via our Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Brent Falls As Libya Restarts Oilfield

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. FOMC Meeting Minutes @ 18.00 & EUR Mario Draghi Speaks @ 18.30 GMT

WHAT WE’RE WATCHING TODAY

Brent Falls As Libya Restarts Oilfield

Brent crude fell below $109 a barrel today as Libya restarted an oilfield, leaving it on track to fall for an eighth session. This would make it its longest losing streak in over four years. Easing worries over possible disruptions to supply from the conflict in Iraq also dragged on prices. August Brent crude declined 12 cents to $108.82 a barrel, down nearly 6 percent from a nine-month high reached in June. U.S. crude for August delivery was up 3 cents at $103.43 a barrel, after Tuesday’s settlement marked its longest losing run since December 2009. Meanwhile, Iraq’s new parliament has brought forward the date of its next session to July 13, in the face of a militant insurgency that has swept large parts of the country. Investors are eyeing more data on oil inventories in the United States and on China’s trade later this week to take the pulse on oil demand at the world’s two largest consumers. Lingering weakness in the Chinese economy could prompt Beijing to launch further stimulus measures to shore up growth which could lift its fuel demand. U.S. crude inventories fell by 1.7 million barrels in the week to July 4, compared with analyst expectations for a decrease of 2.2 million barrels.

Gold Inches Up On Fund Inflows

Gold inched up as the world’s top bullion fund saw a second straight day of inflows, even as markets awaited the minutes of the Federal Reserve’s June policy meeting to gauge the U.S. central bank’s outlook for the economy and interest rates. Spot gold edged up 0.2 percent to $1,321.15 an ounce. SPDR Gold Trust confirmed its holdings rose 2.09 tonnes to 800.28 tons on Tuesday, after gaining 1.8 tons on Monday. Demand for gold was boosted by violence in the Middle East and Ukraine. Bullion investors are also awaiting the minutes of the Fed policy meeting later today for clues on the timing of a rate hike. A strong U.S. jobs report last week fuelled fears of an earlier than expected rate hike in the world’s largest economy. A hike would encourage investors to withdraw money from non-interest-bearing assets such as gold.

Australia Consumer Confidence Improves

A measure of Australian consumer sentiment improved edged higher in July as worries about family finances eased. The index of consumer sentiment rose a seasonally adjusted 1.9 percent in July, from June when it had inched up only 0.2 percent. The index still has not fully recovered from May’s 6.8 percent dive which followed a budget of welfare reforms, cutbacks and increased charges for services. The index reading of 94.9 for July was down 7.1 percent on the same month last year and means pessimists still exceed optimists. The largest improvement in July came in the survey’s measure on the outlook for family finances over the next 12 months, which jumped 12.3 percent though from very low levels. The index of family finances compared to a year ago rose 1.9 percent and that for economic conditions over the next 12 months increased by 3.9 percent. Consumers remained cautious on the longer-term outlook, however, with the index of economic conditions over the next five years dropping 3.8 percent.

That sums up today’s highlights! Remember to keep posted on our social media pages for all the latest trading updates for the day. We hope you have a profitable day on the markets.

Dollar Close To Recent Lows As Yellen Testimony Awaited

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: US Fed Chair Yellen Testifies @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Close To Recent Lows As Yellen Testimony Awaited

Janet Yellen’s appearance today in front of the Joint Economic Committee will be followed for any shifts in the Fed’s economic and policy outlook following the recent employment figures. Traders across the financial markets will be watching to see if she has a message that could alter the course for interest rates. The U.S. dollar languished close to six-month lows against a basket of major currencies today as investors braced for the possibility that dovish comments from Janet Yellen could further undermine the greenback. The dollar index sank nearly a half percent Tuesday and is now down nearly a full percent in the last week. The dollar was weaker across the board, falling against the euro, yen, sterling, Swiss franc and major emerging market currencies such as the Indian rupee and Turkish lira. The dollar index was at its lowest level since October 2012, and its lowest level against the pound since August 2009.

Frustration has been growing among some players at the dollar’s inability to move higher even after the payrolls report, as the Federal Reserve continues to scale back its bond-buying support. Market consensus seems to be forming on the view that the Fed is still a long way from raising interest rates even after it ends its quantitative easing program, which is expected later this year. Analysts expect the dollar to recover when there’s sign of inflation or a further dip in the unemployment rate.

Brent Edges Up On Fall In U.S. Crude Stocks & Ukraine Risks

Brent Crude edged higher above $107 per barrel today after an industry report showed U.S. crude stocks declined last week, while increasing geopolitical risks in Ukraine helped put a floor under prices. Crude inventories in the United States fell by 1.8 million barrels last week, going against analysts’ expectations for a 1.4-million-barrel gain. Investors now await confirmation of the API numbers from the U.S. Department of Energy’s Energy Information Administration, which releases its more closely watched data later on Wednesday. Brent crude rose 26 cents to $107.32 a barrel by 0352 GMT, after ending the previous session 66 cents lower. U.S. crude gained 60 cents to $100.10 after the contract had settled 2 cents higher. Heightening tensions in Ukraine and the possibility of the country slipping into civil war also helped lift oil markets, as traders weighed the risk of supply disruptions from Russia, the world’s biggest oil producer.

Twitter Drops Nearly 18% As Lock-Up Period Expires

Twitter dropped sharply on Tuesday as nearly 500 million shares from company insiders became eligible to be sold. The stock fell nearly 18 percent on record volume of more than 124 million shares to a fresh all-time low since their trading debut on Nov. 7. The lock-up agreement that expired this week applied to about 470 million shares, or 82 percent of Twitter’s equity. With the stock’s recent selloff, Twitter’s current market cap is at $19 billion. Tuesday’s reaction to Twitter’s lock-up expiry was in sharp contrast to that of Facebook in late 2012. Facebook shares jumped 13 percent on Nov. 14 that year, when its lock-up expiry of roughly 800 million shares did not trigger an immediate wave of insider selling. Last week, Twitter’s net loss grew by more than $100 million in the first quarter, though the company’s operating earnings and sales topped Street expectations. Monthly active users hit 255 million, with mobile MAUs making up 78 percent of the total.

That sums up today’s highlights! We hope you have a profitable day on the markets

Crude Rises

Monday morning market opening saw U.S. light sweet crude rise 25 cents, or 0.26 percent, to $96.13 per barrel. Other commodities also went up on indication that the world’s second largest economy China is becoming more dynamic, coupled with sanguinity that the nastiest eurozone debt crisis is over and that Japan’s efforts to revive its stagnant economy are paying dividends.

Moreover, Brent oil prices move near a three-month high at $113 a barrel before the Fed’s two-day meeting starting on Tuesday and the employment data on Friday that is expected to show more signs of recovery.

In general, stock indexes showed diversity on Monday as oil prices rose following strong U.S. durable goods data and earnings results from Caterpillar, NBC news reported as markets in the US opened.

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