Brexit concerns faded, oil prices started to improve
Oil prices extended gains on Monday as the market opening weaker dollar and easing concerns over a possible British exit from the European Union to help the commodity price after six days of consecutive decline.
London, Brent crude for August delivery (LCOc1) rose 29 cents to $ 49.46 a barrel on Sunday, after settling rose $ 1.98, or 4.2 percent, at $ 49.17 on Friday. NYMEX crude for July delivery (CLc1), which expires on Tuesday, rose 31 cents at $ 48.29 a barrel, after closing $ 1.77, or 3.8 percent, on Friday.
US crude oil futures fell nearly 8% since reaching highs near $ 52 per barrel on June 9, Nymex oil prices are still up nearly 80% since falling to a 13-year lows at $ 26.05 in early February. However, with prices now at a level that makes drilling economically viable for some companies, the number of rigs may begin to rise immediately and can slow decline in US production.
Oil prices continued to recover despite data showing US power company to add an oil rig for a third week in a row, showing higher production for the future. Oil services company Baker Hughes reported nine additional rigs in June.
Meanwhile, the Brent premium to West Texas Intermediate crude oil stood at $ 1.19 in Friday’s settlement, compared with a gap of 98 cents at the close of trading Thursday.
Campaign on Britain’s membership of the European Union back on Sunday after missing three days because of the killing of a member of parliament pro-EU. Three polls ahead of the vote Thursday show the camps opted to stay in the EU to recover gradually increased, although the overall picture has not seen clearly.
The pound rose against the dollar last at $ 1.4450 from $ 1.4350 on Friday. Japanese yen in trading not far from its highest level against the dollar in nearly two years.
Technically
Resistance: 49.03 49.27 49.69 High / Low: 49.05 / 47.33
Support: 48.75 48.48 47.96 Running Price: 48.87
Comment: For intraday trade today suggest Sell at 48.70; stop loss at 48.30; targets at 49.10.
Yen weakened due to the trade data
Yen opened lower on Monday due to the trade of trading data plus investors who are focused on Brexit this week.
In Japan, the trade balance surplus of ¥ 130miliar adjusted due to the month of May, while exports fell 10.4% year-on-year and imports fell 13.8% year-on-year. USD / JPY was trading at 104.65, up 0.45%, while the AUD / USD was changing hands at 0.7424, up 0.39%. GBP / USD is at 1.4480. up 0.84%, while EUR / USD up 0.51% at 1.1334.
US dollar index, measuring the strength of the dollar compated with six major currencies, was recorded last quoted at 94.30 points.
At the weekend, China reported that growth in average property prices slowed on a monthly basis for the first time in seven months, quoted by the National Bureau of Statistics data.
The NBS said 60 of the 70 cities monitored prices in May rose from the previous month compared with 65 cities in April. And 36 of the 70 saw monthly price growth narrowed, compared with 21 in April.
The pair rose to the highest in earlier trading on Friday after Japanese Finance Minister Taro Aso warned that Tokyo was ready to take action against “one-sided, sharp and speculation-driven” gains in the yen.
The statement one day after the Bank of Japan left monetary policy on hold, sending the yen surged to a two-year highs against the dollar.
Investors will also look at the monetary policy by the Federal Reserve Chairman Janet Yellen after the US central bank to keep interest rates this week and lowered its forecast for how much they expect to raise rates in the next few years
Technically
Resistance: 104.61 104.78 105.07 High / Low: 104.78 / 103.53
Support: Running 104.34 104.23 104.07 Price: 104.56
Comment: For intraday trade today suggest sell at 104.70; stop loss at 105.00; target at 104.35.
Wall Street fell, weekly index down
Stocks closed lower at the end of the last trade in the US, with the poor performance of health care and technology sectors, amid uncertainty about the continuation Brexit.
The Federal Reserve kept rates unchanged at a meeting last week, and Fed Chairman Janet Yellen said fears Brexit a factor in decision making. Following the central bank’s latest statement came after a report in May that weakened job.
A significant shift in the economic outlook, St. Louis Fed President James Bullard said the low growth and the Fed interest rate is extremely low at only 63 basis points is likely to remain in place until through 2018, implying only the possibility of a rate hike until then.
The US dollar index is about 0.4 percent lower, with approximately $ 1.128 euro and the yen close to ¥ 104.2 against the greenback. Sterling rose against the dollar near $ 1.436.
Energy was the top performing sector on the day and down a bit during the week. US crude oil futures prices up $ 1.77, or 3.83 percent, at $ 47.98 per barrel. WTI fell 2.2 percent for the week, the worst since early May.
The Dow Jones Industrial Average closed down 57.94 points, or 0.33 percent, at 17,675.16, the highest decline in stocks Merck and Caterpillar shares rose the highest.
Shares of Verizon is a top performer this week on the Dow Jones index, while shares of American Express is the largest underdeveloped.
The S & P 500 closed down 6.77 points, or 0.33 percent, at 2,071.22, with the health care sector led the five sectors were lower and the energy sector rose the highest.
Telecommunication sector was the best performer on the week in the S & P 500, while the health care sector is the worst.
The Nasdaq composite index closed down 44.58 points, or 0.92 percent, to 4,800.34. Apple shares fell 3.5 percent for the week. Nasdaq Biotechnology ETF (IBB) lost 4.2 percent this week.
Technically
Resistance: 17720 17771 17843 High / Low: 17663/17508
Support: 17641 17609 17 586 Running Price: 17720
Comment: For intraday trade today suggest sell at 17700; stop loss 17 790; target at 17 620.
