COMMODITIES: Crude Extends Gains, Gold Pulls Back, Copper Jumps
Sep-24 18:46
- Crude has seen further support today from an EU plan to tariff imports of Russian oil, additional disruption to Russian energy infrastructure, and a tariff agreement between the US and EU.
- WTI Nov 25 is up by 2.5% at $65.0/bbl.
- Despite this move, the trend condition in WTI futures remains bearish and short-term gains are considered corrective. Initial resistance to watch is $65.43, the Sep 2 high, with key short-term resistance defined at $68.43, the Jul 30 high.
- A stronger resumption of weakness would open $57.50, the May 30 low.
- Meanwhile, gold has pulled back today from yesterday's all-time high, as the steady appreciation of the US dollar to fresh recovery highs has weighed on the yellow metal.
- Spot gold is down by 0.9% at $3,729/oz.
- Gold is still in a clear bull cycle and shallow short-term pullbacks remain corrective. The next objective is the $3,800.0 handle. Initial firm support lies at $3,621.4, the 20-day EMA.
- Elsewhere, copper has rallied by 3.9% today to $482/lb, after Freeport declared force majeure at a key mine in Indonesia.
- Freeport said that suspension of its Grasberg Block Cave mine, the second largest source of the metal, following a deadly mud rush will reduce near-term copper and gold output.
- Today’s rally has seen copper pierce initial resistance at $475.14, the 50-day EMA, a clear break of which would open $550.00, the Jul 9 and Jul 28 lows.
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US STOCKS: Late Equities Roundup: Steady/Mixed Dow Off Friday Record Highs
Aug-25 18:43
- Stocks held near steady in SPX eminis to mixed in late Monday trade, the DJIA underperforming as markets (rates, currency and equities) unwound a portion of Friday's post-Chair Powell related rally.
- After climbing to new record high last Friday (45,757.84), the DJIA trades currently down 281.62 points (-0.62%) at 45350.5, S&P E-Minis down 12.5 points (-0.19%) at 6470.75, Nasdaq up 21.1 points (0.1%) at 21518.51.
- Health Care and Consumer Staples sectors underperformed in late trade, Pharmaceutical stocks weighed on the Health Care sector: Dexcom -6.37%, Moderna -4.90%, Align Technology -3.04%, Regeneron Pharmaceuticals -2.74% and Pfizer -2.61%. Highlight laggers in the staples sector included: Keurig Dr Pepper -10.03%, Estee Lauder Cos -2.85%, Constellation Brands -2.11% and Molson Coors Beverage -2.08%.
- On the positive side, tech stocks continued to lead gainers in late trade: Western Digital +3.51%, Seagate Technology Holdings +3.22%, NVIDIA and Super Micro Computer both +1.89% (Nvidia reports after Wednesday's close). Meanwhile, Interactive media and entertainment shares were buoyed Communication Services: Netflix +1.71%, Alphabet +1.54%, Take-Two Interactive Software +1.40% and Electronic Arts +0.70%.
LOOK AHEAD: Tuesday Data Calendar: Fed Speak, Durables/Cap Goods, 2Y Note Sale
Aug-25 17:56
- US Data/Speaker Calendar (prior, estimate)
- 08/26 0830 Richmond Fed Barkin expected to repeat speech on economy from Aug 12, will take audience Q&A).
- 08/26 0830 Philadelphia Fed Non-Mfg Activity (-10.3, --)
- 08/26 0830 Durable Goods Orders (-9.4%, -4.0%), ex-trans (0.2, 0.2)
- 08/26 0830 Cap Goods Orders Nondef Ex Air (-0.8, 0.2%), Ship (0.3%, 0.2%)
- 08/26 0900 FHFA House Price Index MoM (-0.2%, -0.1%)
- 08/26 0900 S&P CoreLogic CS 20-City MoM SA (-0.34%, -0.20%), YoY (2.79%, 2.2%)
- 08/26 1000 Richmond Fed Manufact. Index (-20, --), Business Conditions (-8, --)
- 08/26 1000 Conf. Board Consumer Confidence (97.2, 96.4)
- 08/26 1030 Dallas Fed Services Activity (2.0, --)
- 08/26 1130 US Tsy $85B 6W bill auction
- 08/26 1300 US Tsy $69B 2Y Note auction (91882CNV9)
- Source: Bloomberg Finance L.P. / MNI
PIPELINE: Corporate Bond Roundup: $1.05B SEB Launched
Aug-25 17:27
- Date $MM Issuer (Priced *, Launch #)
- 08/25 $1.05B #Skandinaviska Enskilda Banken AB (SEB) $750M 5Y +73, $300M 5Y SOFR+106
