Crude oil surged in trading
Crude oil futures rose sharply, almost reaching the highest point two weeks, as investors reacted to bullish comments from OPEC president Mohammed bin Saleh al-Sada about a possible agreement between the member states at a meeting in Algeria in late September aimed at stabilizing volatile energy markets global.
On the New York Mercantile Exchange, WTI crude oil for delivery in September traded between $ 41.83 and $ 43.38 per barrel before closing at $ 43.03, up 1.23 or 2.94% on the session. On the Intercontinental Exchange (ICE), Brent crude for October delivery wavered between $ 44.25 and $ 45.57 per barrel, before settling at $ 45.38, up 1.11 or 2.51% on the day. In-session highs, front-month contract for US crude oil jumped to its highest level since July 24.
Last week, WTI crude oil fell as low as $ 39.19 per barrel, closing below $ 40 on August 2 for the first time since April. Brent crude also traded on Monday at its highest level since the end of July, up more than 8% from last week lows of $ 41.51 per barrel. Crude oil prices received a significant upward pressure on Monday after Al-Sada stressed that the global oil market remains on pace to balance the volatility regardless of the signal continues around the world. Al-Sada, who also served as Minister of Energy of Qatar, said Monday in a closely watched statement that OPEC would hold an informal meeting of member states on the sidelines of the International Energy Forum in Algeria on 26 to 28 September
This statement was released today after data showed that hedge funds increasing their short positions in WTI crude last week to the highest level in a decade. On Friday, the US Commodity Futures Trading Commission (CFTC) said short positions in WTI futures and options rose to 218, 623 for the week ending on August 2, the highest number since 2006. For the past three weeks, hedge funds have nearly twice folding their short positions in WTI crude, according to the CFTC.
Last week, oil prices fell to the lowest level since talks on a highly anticipated meeting in Doha collapsed in mid-April. Before the oil summit in Qatar, US crude oil futures rose nearly 40% from the level in mid-February in hopes of coordinated production freezing between Russia, Saudi Arabia and two other large manufacturers. On February 11, WTI crude oil slumped to the lowest level in 13 years at $ 26.05 per barrel.
Oil prices rose sharply on Monday despite signals of weakening demand in China. In July, China’s exports fell 4.4% in US dollars while imports fell 12.5% in terms of dollars. China, the world’s second largest consumer of oil behind the US, imported around 7.62 million barrels in May, four months.
Technically
Resistance: 42.88 43.05 43.21 High / Low: 43.36 / 41.01
Support: 42.64 42.57 42.31 Running Price: 42.76
Comment: For intraday trade today suggest the Buy at 42.91; stop loss at 42.61; targets at 43.51.
Euro versus USD fell in trading
Euro versus the USD fell slightly in quiet trading on Tuesday morning, as investors continued to increase their focus on interest rate hikes from the Federal Reserve in 2016, after strong American jobs report from the Labor Department last weekend.
Currency pair traded in a tight range between 1.1072 and 1.1105 before closing the US afternoon session at 1.1084, down 0.03% on the day. Euro is on pace for a fourth victory session versus the US Dollar during the last five trading days. Since voters in the United Kingdom decided to leave the EU in a historic referendum on June 24, the pair remains right in a tight range between 1.0950 and 1.1236. During this period, the euro was down fractionally by 0.30% compared to its American counterpart.
EUR / USD the possibility of getting support at 1.0959, the low of July 27 and met with resistance at 1.1233, the high from August 3.
The labor market added 255,000 nonfarm payrolls in July, continuing a rebound from a weak period in May when the US economy added just 24,000 jobs for the month. As the labor market has been showing signs comprehensive improvement in recent months, the possibility of a Fed rate hike in the coming months has grown considerably. Specifically, employed in the construction industry lagging picked up at a higher clip in July by 14,000 for the month, even job gains in the mining sector is still weak. At the same time, employment in the temporary help category rose by 17,000, providing an indication that a large bag part-time workers could be on the verge of full-time employed. Economists also seem to be driven by a 0.3% surge in wages per hour on average, which is now up 2.6% over the last 12 months. Meanwhile, the unemployment rate remained flat at 4.9%, while the labor force participation rate edged up by 0.1% to 62.8%.
On Monday, CME Group (NASDAQ: CME) tool Fed Watch placed the possibility of a rate hike by the September Federal Open Market Committee (FOMC) at 18.0%, up sharply from 9% at the session last Thursday before the release. The probability of a rate hike in December of FOMC also increased to 40%, up from 29.4% in the middle of last week. The FOMC has held the benchmark Federal Funds Rate which is stable at a level between 0.25 and 0.50% in each of the first five meetings this year. Last December, the US central bank to stop the seven-year zero interest policy by approving the first rate hike in nearly a decade. Any increase in interest rates by the Fed this year is seen as bullish for the dollar, as foreign investors piled into the greenback to take advantage of higher yields.
Elsewhere, a high court in Italy decided on Monday that Matteo Renzi can proceed with a referendum on a package of constitutional amendments that can lead to the resignation of prime minister if the measures were defeated. As a national poll illustrates the voter base is largely shared on a comprehensive constitutional change, the government Renzi is expected to schedule a referendum date for sometime between October and December. Just as Brexit decision in June, the sound of the wind can have wide-ranging consequences for the future of trade policy in Europe.
Technically
Resistance: 1.1082 1.1086 1.1091 High / Low: 1.1104 / 1.1043
Support: 1.1075 1.1073 1.1068 Running Price: 1.1077
Comment: For intraday trade today suggest Buy at 1.1081; stop loss at 1.1076; targets at 1.1093.
Hang Seng rose in trade, approaching the highest price 8 Months
The Hang Seng index in Hong Kong Stock Exchange trading on Tuesday it was observed rose 348.67 points, or 1.57 percent, at 22414.76. Strengthening the Hang Seng index pushed the strengthening of Asian markets and a strong US jobs data on Friday raised the risk appetite of global investors. This increase was attributed Hangseng be in the highest position for 8 months.
US employment report rose more than expected for the second consecutive month in July and wages rise, reinforcing expectations of faster economic growth, and increases the probability of the Federal Reserve interest rate hikes this year.
Nonfarm payrolls rose 255,000 after an upwardly revised 292,000 jobs in June, with broad-based employment creation in all economic sectors, the Labor Department said on Friday. Economists polled by Reuters had forecast payrolls increased by 180,000 in July.
Strong US jobs data offset the impact of China’s July trade data weak report on Monday. China’s trade surplus reached US $ 52.3 billion in July from $ 48.11 billion the previous month, is greater than the market forecast of $ 48.00 billion.
Imports fell 12.5% year-on-year in July, almost double the fall expected by analysts.
Exports are also much weaker than expected, slid 4.4% over the same period, marking the fourth consecutive month exports have fallen. The market expects the 3.2% rise in exports in Juli.Data strong US jobs offset the impact of China’s July trade data weak report on Monday.
Chinese property developer Evergrande Group jumped more than 4 percent to its highest in three months, after the company said it had bought a stake in rival Vanke and also raised its stake in the company to trade in goods Langfang Development Co. Ltd. 15 percent.
Technically
Resistance: 22483 22493 22 577 High / Low: 22480/21663
Support: 22337 22260 22087 Running Price: 22452
Comment: For intraday trade today suggest Sell at 22 346; stop loss at 22 466; target at 22 146.
