OIL PRODUCTS: Diesel Cracks Strong, Gasoline Weak Before EIA Data
Aug-24 13:58
The oil product crack spread trends of strong diesel and weak gasoline continue ahead of the EIA inventory data release later this afternoon.
- A Bloomberg survey suggests gasoline inventories are expected to draw by -1.4mbbls and distillates to build by +0.75mbbls after API showed a build in both products.
- Tight supply is supporting diesel while demand concerns are pushing gasoline lower.
- US 321 crack up 0.1$/bbl at 36.04$/bbl
- US gasoline crack down -1.7$/bbl at 19.86$/bbl
- US ULSD crack up 2.9$/bbl at 68.44$/bbl
- Gasoline-Brent down -1.2$/bbl at 11.37$/bbl
- Gasoil-Brent up 2.2$/bbl at 52.79$/bbl
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EQUITIES: Early Gains Reversed Upon Cash Open
Jul-25 13:51
- Modest downtick in the e-mini S&P puts the index back to flat on the day, with earnings and the Fed decision on Wednesday the key focus points. Overnight lows at 3951.50 are intact for now, while 3988.75 defines the intraday high. More broadly, the index is holding on to the bulk of recent gains after last week's bullish extension.
- This confirmed a break above the 50-day EMA and reinforces short-term bullish condition that targets 4145.75 next, the Jun 9 high.
- Energy and communication services names are the outperformers on the sector breakdown, while tech and utilities sit at the bottom of the pile. Decliners outnumber advancers so far Monday (~300 / ~200) so far, but little sign of programmatic activity around 20 minutes into trade.
CANADA: GoCs Return To Outperforming Tsys
Jul-25 13:47
- GoCs flip back to outperforming Tsys in today’s sell-off, and across the curve after Friday’s front end underperformance (2YY +3bps vs 4.5bps, 10YY +4bps vs 7bps). It pushes Can-US yield differentials back near or at month lows with the 2Y at +6bps and 10Y at +4.5bps.
- It’s unclear what has caused this return to outperformance today, with GoC yields if anything supported by a second week of small improvement in Nanos consumer confidence after eleven consecutive declines. It could just be some overhang from the combination of last week’s CPI miss and retail sales real momentum fading.
- No notable local releases scheduled this side of the FOMC, with the main release GDP for May on Friday.
EURGBP: Tracking rate differentials
Jul-25 13:05
- Just a quick note to draw attention to the correlation between EURGBP and the Euribor-SONIA Jun-24 spread.
- After the correlation appeared to breakdown somewhat in early April, with GBP staying strong than the rate spread would have suggested, the correlation was reestablished towards the end of May and has remained strong ever since.
