Oil futures prices slumped, due to demand concerns
Crude oil prices dipped in early trading Tuesday, with Brent falling back below $ 50 a barrel as fears of economic limelight coupled with worries over oil demand, many analysts said oil would fall dramatically later this year.
Brent crude oil futures international benchmark traded at $ 49.95 a barrel, down 15 cents from their last settlement. US West Texas Intermediate (WTI) crude oil futures fell 39 cents to $ 48.60 per barrel.
Analysts said that worries over the global economy weighed on prospects for oil demand and prices.
“The deteriorating outlook for the global economy, financial market uncertainty and the ripple effects on the main areas of growth in oil demand is likely to exacerbate the trend of growth in industrial demand has been lackluster,” British bank Barclays (LON: BARC) said in a note to clients.
JPMorgan (NYSE: JPM) also said the outlook for the oil market is the most that the “risk of macro-economy may weigh on oil prices,” although the US bank added that the oil price will still likely to rise between this year and next because of stock-drawn, and political risks and mature oilfield market tightens.
JPMorgan said it expected Brent and WTI to average $ 47.30 and $ 46.66 per barrel respectively this year and $ 56.75 per barrel for the second in 2017. It increased from $ 2 each for 2016 and $ 1 , 75 per barrel for both benchmarks for 2017, compared with previous estimates of banks.
In the latest sign of a glut in processed products, which traders said would reduce orders for crude oil, which is the refining of raw materials, most importantly, some tankers carrying gasoline components making has dropped anchor off the port of New York, could not let the tanks ashore full ,
Technically
Resistance: 48.58 49.75 49.79 High / Low: 49.94 / 45.76
Support: 48.46 48.41 48.33 Running Price: 48.53
Comment: For intraday trade today suggest Sell at 48.39; stop loss at 48.99; targets at 47.19.
AUD experienced a slight gain
Aussie drifted lower and the yen made slight gains in early Asian session on Tuesday because of politics in Australia dominated the market sentiment and investors looked ahead to report trade data.
USD / JPY was changing hands at 102.54, down 0.04% in early Asia. AUD / USD was trading at 0.7352 with the market awaiting the final results of federal elections and preparing for the week ahead which will lead the party to form a coalition government.
GBP / USD was trading at 1.3280, down 0.05%.
In New Zealand, NZIER business confidence survey for the second quarter reached 19%, from 2% previously, with capacity utilization at 92.9%, a dip of 93.2%.
NZD / USD was trading at 0.7217, down 0.12%, after the survey.
In Australia, AIG services index for June came in 51.3, a tad down from 51.5 the previous month.
Australia reported exports and imports for May as well as the visible trade balance in a deficit of A $ 1.5 billion. PMI services for June Caixin visible figure in 52.3, up from 51.2 the previous month. Also in Australia comes in retail sales for the month of May with a 0.3% gain seen in months.
Overnight, the dollar slid again weakened against other major currencies on Monday, as investors remained cautious amid ongoing uncertainty over the effects of global Brexit sound.
GBP / USD edged up 0.16% to 1.3288, still close to 31-year low of 1.3122 set on June 27, a level not seen since 1985.
The pound has been under heavy selling pressure since England shocked markets by deciding to leave the EU, triggering uncertainty over the consequences of noise U.K. the country’s economy and the global economy as a whole.
Technically
Resistance: 0.7471 0.7490 0.7502 High / Low: 0.7440 / 0.7322
Support: 0.7451 0.7436 0.7420 Running Price: 0.7527
Suggestion: For intraday trade today suggest Buy at 0.7550; stop loss at 0.7510; targets at 0.7600.
The Nikkei rose driven by the strengthening of the Yen
Japan’s Nikkei Stock Exchange in early trading on Tuesday observed to rise, when it was observed rose 90 points or 0.89 percent at 15634.76. The weakening of the yen’s rise triggered Nikkei index.
This morning monitored yen rose against the US dollar. Pair USDJPY exchange rate fell 0.20 percent at 102.34.
Strengthening Yen occur with stronger back Brexit concerns. Brexit worries reappeared after Nigel Farage, leader of the UK Independence Party, announced his resignation, saying “political ambitions” of his that has been achieved when the U.K. leave the EU.
The main export automotive stocks rose, with Toyota shares rose 0.35 percent, Honda shares rose 1.65 percent, Mitsubishi shares rose 0.66 percent.
In early trading, the shares were down were shares Inpex Corp fell -2.76 percent, Haseko Corp shares fell -1.19 percent, Maruha Nichiro Corp shares fell -0.82 percent, Nippon Suisan Kaisha Ltd. fell -0, 57 percent, Shimizu Corp shares fell -0.52 percent.
In early trading, shares rise were shares Toho Zinc Co Ltd rose 5.92 percent, shares of Sumitomo Metal Mining Co Ltd rose 5.15 percent, shares of Marui Group Co Ltd rose 3.55 percent, Pioneer Corp. shares rose 3, 39 percent, shares of Japan Tobacco Inc rose 2.93 percent.
Today will be released the data Nikkei Services PMI in June is expected to rise.
The US dollar index, which measures the greenbacks strength against six other major currencies, last quoted at 95.61.
This week, Australia reported exports and imports for the month of May as well as the visible trade balance in a deficit of A $ 1.5 billion. Caixin services PMI for June is due to the level of intelligence seen in 52.3, up from 51.2 the previous month. Also in Australia comes in retail sales for the month of May with a rise of 0.3%. These things can affect the market price movement.
Technically
Resistance: 15647 15663 15 677 High / Low: 15776/15485
Support: 15532 15433 15373 Running Price: 15600
Comment: For intraday trade today suggest Sell at 15 532; stop loss 15 652; target at 15 332.
