Tag Archives: WTI

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.

Yellen Prepares To Address On Financial Stability

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. Fed Chair Yellen Speaks @ 15.00 GMT

WHAT WE’RE WATCHING TODAY

Yellen Prepares To Address On Financial Stability

Federal Reserve Chairwoman Janet Yellen is preparing to discuss financial stability later today as market-watchers worry that the Fed’s exit from its easy monetary policy stance will may upset the markets. Yellen speaks today at the International Monetary Fund’s first annual central banking lecture and will then joins discussions with IMF current managing director Christine Lagarde. Stock markets have been range-bound with low volatility. Further concern has been targeted toward parts of the bond market, particularly on the corporate side. In her recent press conference, Yellen said that financial stability concerns are always on the table for policy makers but are not impacting on monetary policy in any major way at the moment. She stressed several times that the outlook was uncertain as some observers noted that Yellen’s focus on uncertainty was a message to buoyant financial markets that a little caution might be welcome. Fed officials are aware that ignoring risks to financial stability has its perils but focusing too much on it does as well. Fed Chair Yellen Speaks Today @ 13.00 GMT.

WTI Trades Near Three-Week Low

West Texas Intermediate traded close to the lowest price in three weeks before stockpile data that may signal the strength of fuel demand in the U.S. Futures were little changed in New York after declining 3 cents yesterday. U.S. crude inventories likely fell last week while gasoline supplies rose before data from the Energy Information Administration today. Fighting in Iraq has not yet spread to the south, home to more than three-quarters of its oil production so the markets are closely monitoring the political situation. WTI for August delivery was at $105.35 a barrel in electronic trading on the New York Mercantile Exchange, up 1 cent, at 2:52 p.m. Sydney time. The contract slid to $105.34 yesterday, the lowest close since June 11. The volume of all futures traded was about 54 percent below the 100-day average. Prices have gained 7 percent this year. Brent was steady in London and was 3 cents higher at $112.32 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.94 to WTI, compared with $6.95 yesterday.

Aussie Dollar On A Roll, But Will It Last?

The Australian dollar soared to eight-month highs this week, seemingly on a roll but questions are being raised as to whether it will last. The AUD has been on an upward trend since late January and has gained approx 6.5 percent against the U.S. dollar so far this year, making it the best performing major currency after the New Zealand dollar. Its strong performance, driven by a rise in risk appetite and firm demand for Australian bonds, has led some currency analysts to believe that parity with the U.S. dollar could be achieved by year-end. Yet others believe that its recent performance should not be taken as a sign that a move to the one-to-one level with the U.S. dollar is likely to come sooner rather than later. The Aussie dollar rose as high as $0.9504 on Tuesday after the Reserve Bank of Australia left interest rates unchanged and delivered as statement that was viewed as less dovish than anticipated. Data on Wednesday showed Australia’s May trade deficit at A$1.9 billion, compared with analyst expectations for a deficit of A$120 million. Recent data also shows consumer confidence in Australia has taken a hit from the May budget. The concern, according to economists, is that the fall in confidence will spill over into weaker retail sales and makes the economic outlook uncertain.

That sums up today’s highlights! Please keep checking into our Facebook, Twitter, Google+ and LinkedIn pages for all the latest daily trading news. We hope you have a profitable day on the markets.

ECB Set To Cut Rates Driving Banks Into Lending

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WHAT WE’RE WATCHING TODAY

ECB Set To Cut Rates Driving Banks Into Lending

The European Central Bank is set to impose negative interest rates on its overnight depositors, seeking to push banks into lending and to prevent the euro zone falling into deflation as experienced in Japan. At today’s meeting, ECB policymakers are also expected to launch a loan program for banks with strings attached to make sure the money actually gets out into the euro zone economy. Even though the risks are limited of the euro zone entering a spiral of falling prices, slowing growth and consumption, the ECB is increasingly concerned that continuously low inflation and weak bank lending could upset the recovery. The economy grew just 0.2 percent in the first quarter, and euro zone annual inflation unexpectedly slowed to 0.5 percent in May, putting additional pressure on the central bank to step in. A broad stimulus package may be in the making that is likely to consist of a cut in interest rates which would push the deposit rate for the first time into negative territory and the offer of longer-term loans linked to further lending. Large-scale asset purchases remain a distant prospect. Cutting the deposit rate below zero would see the ECB charge banks for parking their excess money at the central bank, a step it hopes will prompt them to lend out the money instead. The euro has fallen about 4 U.S. cents against the dollar since the ECB’s May meeting, hitting $1.3586 last Thursday. Before taking any decision, the Governing Council will look at the June update of its quarterly staff projections. In March, they showed it would take 2-1/2 years for inflation to get near the ECB’s target of below but close to 2 percent. A deteriorating outlook will be seen as triggering action although a move to deploy so-called quantitative easing remains some way off.

Nikkei Touches Two-Month High. Is it Just The Start?

The Nikkei touched a two-month high this week, a sign of lessening concerns about Japan’s economy, according to analysts who remain bullish on Japanese stocks. Stocks powered higher on Thursday, to reach 15,141 soon after open, its highest level since April 3. Last year, plans to boost Japan’s economy through aggressive easing, fiscal stimulus and structural reform saw the Nikkei rise 55 percent, while the yen depreciated 21 percent against the U.S. dollar boosting exporter stocks. However, the Nikkei fell 8.2 percent during the first quarter of 2014 amid concerns about the impact of a consumption tax hike to 8 percent from 5 percent in April. Companies were afraid that Japan’s economy would lurch back into the dangerous deflationary spiral that the last tax hike prompted in the 1990s but the economy has proved resilient, and Japan’s core consumer prices jumped 3.2 per cent in April from a year earlier, the fastest gain since February 1991. Meanwhile, investors have also turned more positive on progress on structural reforms. This week Japan’s corporate tax rate was cut, one of the structural reforms investors were worried might not come to fruition. Japan’s corporate tax rate currently sits at around 35.6 percent, among the highest in industrialised nations. The release this week of a draft of the government’s growth strategy has also powered stocks higher.

WTI Falls for Second Day Amid Record U.S. Supply

West Texas Intermediate fell for a second day as crude stockpiles remained near record-high levels amid declining fuel demand in the U.S., the world’s biggest oil consumer. Futures dropped as much as 0.4 percent in New York. Crude supplies shrank by 3.43 million barrels to 389.5 million last week. They were at 399.4 million through April 25, the most since the Energy Department’s statistical arm started publishing weekly data in 1982. There is still concern that the market is oversupplied. WTI for July delivery declined as much as 45 cents to $102.19 a barrel in electronic trading on the New York Mercantile Exchange and was at $102.34. Brent for July settlement decreased as much as 40 cents, or 0.4 percent, to $108 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $5.98 to WTI.

That sums up today’s highlights! Keep checking in regularly via our social media channels for all the latest trading updates and news. We hope you have a profitable day on the markets.

Is There An End In Sight To The Six-Year Bull Run?

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. Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Is There An End In Sight To The Six-Year Bull Run?

Are stocks telling us that a bear market is coming? That’s the opinion of some analysts who point out that bear markets ‘start with a whimper or a bang’. When it starts with a bang, the first clue will be a major break in the market that no one can explain. That will eventually be followed by a correction at which point everyone will be aware that something bad has happened. Should this happen, indexes will fall by double digits, investors will panic, and stocks will nosedive. But when a bear market starts with a whimper, it confuses nearly everyone. A meandering, volatile market is frustrating. At first, bulls will be hopeful that the market will keep going up, but eventually, the market tops out and retreats. Typically, a market making new highs is a healthy sign. In a looming bear market, new highs on lower volume is a warning sign. Right now, the strongest case for the bulls is the Fed but in the history of the stock market, no institution has been able to prevent a bear market. What might cause the market to snap is not certain - it could be an economic event, a geopolitical crisis, or a spike in interest rates. If it happens, nearly everyone will realise the market is in trouble at which point everyone will attempt to sell at once. Is that crunch time getting closer? No one knows but some believe a bear market is inevitable sooner rather than later.

The U.S. stock market closed broadly lower yesterday, as investors turned cautious amid a sell-off of small and high-growth companies. The benchmark S&P 500 and Dow Jones Industrial Average retreated from record levels set on Tuesday. The S&P 500 finished 8.92 points, or 0.5% lower at 1,888.53. The Dow Jones Industrial Average broke its five-day winning streak and closed 101.47. points, or 0.6%, lower at 16,613.97. The Nasdaq Composite ended the day down 29.54 points, or 0.7%, at 4,100.63.

Dollar Holds Losses Before Yellen Speaks Today

With Federal Reserve Janet Yellen due to speak later today and expectations that the central bank will maintain stimulatory policies, the U.S. dollar managed to hold losses against the majority of its 16 major peers after touching its lowest in almost a week versus the yen yesterday. Yellen told Congress last week the economy needs support. A report showed Japan’s gross domestic product expanded at the fastest pace in 2 1/2 years, damping bets for additional Bank of Japan easing. The euro remained higher versus the pound before figures that may indicate growth accelerated in the eurozone. The dollar slipped 0.1 percent to 101.83 yen after touching 101.66, the lowest level since May 9. It traded at $1.3718 per euro from $1.3715.

WTI Drops From Three-Week High; Brent Remains Steady

West Texas Intermediate slid from a three-week high after government data showed crude inventories expanded as production increased to a 28-year peak in the U.S. Brent was steady in London. Futures fell as much as 0.5 percent in New York, the first drop in four days. Crude stockpiles rose to a near-record last week as output climbed to the highest rate since 1986. WTI for June delivery declined as much as 47 cents to $101.90 a barrel on the New York Mercantile Exchange reaching $102.11 at 3:15 p.m. Sydney time. The volume of all futures traded was about 19 percent below the 100-day average. Prices are up 3.8 percent this year. Brent for June settlement was 11 cents lower at $110.08 a barrel on the London-based ICE Futures Europe exchange.

That sums up today’s highlights! Catch up on all the latest news on Facebook, Google+,Twitter and LinkedIn. We hope you have a profitable day on the markets.

Gold On Track For Second Weekly Gain

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: G20 Meetings

WHAT WE’RE WATCHING TODAY

Gold On Track For Second Weekly Gain

Gold was trading near its highest in over 2 weeks on Friday, on track for its best week in a month. This followed minutes from the U.S. Federal Reserve’s last meeting at which monthly bond buying was cut for a third time, as tension in Ukraine persisted. The Fed has reduced monthly bond-buying by $10 billion at each of the past three meetings, while keeping its target for overnight lending between banks in a range of zero to 0.25 percent since 2008. Gold rallied 9.8 percent this year, rebounding from the worst annual drop in more than three decades, as the unrest in Ukraine, a rout in emerging markets and concern the U.S. recovery may be losing momentum spurred demand for a haven. Gold traded at $1,319.65 an ounce from $1,318.95 yesterday, when prices rose to $1,324.61, the highest since March 24.

WTI Heads for Weekly Gain Amid Speculation Of Increased U.S. Fuel Demand

West Texas Intermediate headed for a weekly gain amid speculation that U.S. fuel demand will increase as employment recovers. The discount to Brent decreased to the lowest since September after Libya signaled that it ready to boost crude exports. There are reasonable grounds for an ongoing improvement in the U.S. labor market in the next month or two which is good for demand and oil, with predictions that investors may sell West Texas contracts if prices rise to $105.20 a barrel. The other driving factor for oil is Libya and the negotiations about whether they’re going to restore some of their capacity. WTI for May delivery was at $103.06 a barrel in electronic trading on the New York Mercantile Exchange, down 34 cents. The volume of all futures traded was about 40 percent below the 100-day average. Prices have advanced 4.7 percent this year.

Google Glass Available To Buy Next Week

Google has announced that its Glass product will be available for purchase in the U.S. next week with interested consumers being able to buy online from April 15. Any adult in the US can become an Explorer by visiting the Google site and purchasing Glass for $1,500. Google Glass is available in various shades and frames. The tech giant said the number of spots in its newly extended Glass Explorer Program are limited. The product is currently not available outside of the U.S. but it will be interesting to observe initial user feedback and the reaction from the markets.

That sums up today’s highlights! Don’t forget to keep in touch with all the latest news and events for the day via our social media channels. We hope you have a profitable day on the markets.

WTI Climbs Near Six-Week High

After the slump seen in October that kept crude down all through last month as well, demand is once again up in the world’s largest oil consumers giving a boost to West Texas Intermediate that brought it to its highest price in six weeks as Chinese imports rebounded and U.S. unemployment figures fell.

The commodity’s six-day advance was capped on 6th December and numbers remained relatively unchanged since then. The General Administration of Customs’ data showed that China’s net oil imports increased 19 percent to 5.73 million barrels per day, driving consumption out of its lowest levels in 14 months.

In the U.S., data released by the Labor Department on Friday showed that the unemployment rate fell to 7 percent, the lowest level in five years.

WTI to be delivered in January came in at $97.78 a barrel, an increase of 13 cents. The contract climbed 27 cents to $97.65 on 6th December the highest close since 29th October.

Crude Prices Fall to 4-Month Low as Production Hits 24-Year High

Crude oil price is hovering dangerously over its four-month low price as futures rose 1 mere cent above the lowest close since June. With investors speculating that U.S. stockpiles have increased for a seven consecutive week, outlook does not appear to be improving for West Texas Intermediate, which has vacillated between gains and losses four the last four months.

With the U.S. economy, and the global one by consequence, on the rocks last month over the partial government shutdown and the Fed’s meeting tapering or extension of quantitative easing pumped into the nation’s economy, investors look forward to tomorrow’s release of supply data by the Energy Information Administration to assess demand levels in the world’s biggest consumer of oil.

Last week’s production reached a 24-year high while crude stockpiles expanded by 2.2 million barrels to 386.1 million. WTI for December delivery was at $94.50 a barrel in electronic trading on the New York Mercantile Exchange, down 12 cents, at 4:26 p.m. Singapore time. It closed at $94.61 on Nov. 1, the lowest since June 21. The volume of all futures traded was about 48 percent below the 100-day average.

Concerns that the U.S. government’s 16-day shutdown put a drag on economic growth and hampered oil demand has been keeping traders on their toes as they await the release of other key economic data later in the week that might shed more light on the Fed’s true stance towards its $85 million bond-buying programme after officials said they would proceed with the curtailing of the stimulus upon receiving more indicators of strengthened economy.

Third-quarter’s preliminary economic growth to be released on Thursday and the highly anticipated Non-Farm Payrolls report scheduled for Friday (delayed 7 days due to last month’s halt in government operations) will play an important role not only on investor sentiment, but also on the Fed’s decision regarding economic stimulus at its next meeting in December.

WTI Falls Along With U.S. demand

West Texas Intermedeiate (WTI) recorded another drop, prolonging its second monthly loss with increased crude stockpiles in the U.S. indicating slower demand in the world’s biggest oil consumer.

Futures took a hit of 0.8 percent in New York when the industry-funded American Petroleum Institute announced that inventories increased by 5.9 million barrels last weeks. Supplies reached 382.2 million barrels, recording a jump of 2.4 million barrels, the highest in four months before data from the Energy Administration today.

December deliver of WTI fell as much as 80 cents to &97.40 a barrel on the New York Mercantile Exchange, which the volume of all futures traded declined 17 percent more than the 100-day average. October has seen a drop of 4.5 percent following a 4.9 percent drop last month.

WTI Wavers While U.S. Supplies Reach a Three-Month High

West Texas Intermediated wavered up and down before the release of date indicating that crude stockpiles rose to a three-months high in the U.S.
In New York Futures fluctuated after last week’s drop to 1.2 percent. In the week ended on 11th October, U.S. crude inventories probably climbed by 3 million barrels to 373.5 million, according to a Bloomberg News survey preceding a government report today. That would be the highest level since July.

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