Market update – September 16 – Oil spikes to $72.50
- European bond markets already underperformed yesterday, after a jump in UK inflation and as markets continue to evaluate last week’s ECB move. The US Treasury rate is down, but yields in Australia and New Zealand jumped.
- Solid data on industrial production and a big bounce in the Empire State manufacturing index, along with weaker than expected trade prices, contributed to the improved outlook. The USA500 bounced 0.85%, with the USA100 0.82% firmer, while the USA30 was up 0.68%. The JPN225 lost -0.75%, while GER30 and UK100 futures are up 0.08% and down -0.02% respectively, which suggests a cautious start to the session.
- Data: New Zealand Q2 GDP data much stronger than expected, Australia’s employment report highlights lockdown impact & Japan’s trade data, which showed a huge deficit, as export growth slowed, also added to the negative risk backdrop. Canada’s CPI rose to a 4.1% pace in August from the 3.7% growth rate (y/y, nsa) in July.
- Tech shares got a solid push from Microsoft which announced a boost to quarterly dividends and an increase in share buybacks.
- The JPY strengthened and USDJPY declined to 109.20.
- The EUR and GBP declined against a largely stronger USD, which was only beaten by the JPY.
- USOil spiked to $72.84, albeit from a further reduction in stockpiles, which helped lift the indexes. In the European open it gapped down slightly at $72.38.
- Gold down for a 2nd consecutive day. Currently at $1,784.
Today: Today’s data calendar will be closely tracked, with weekly jobless claims and the Philly index on tap, though none of the reports should impact the outlook on near term Fed policy. The August retail sales report is the highlight.
Biggest Mover @ (06:30 GMT) USOIL rallied to $72.84. Fast MAs flattened implying to short term correction, howveer the outlook holds positive as RSI is at 71 and MACD lines way above neutral zone and extending hgher. ATR (Daily) at 1.69 and ATR (H1) at 0.34
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