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Early Morning Call: Europe, US to open up; AUD/USD still rising; iron ore sinks

After gains yesterday Europe is expected up today; Wall Street is back and gains are expected; Asia up. USD down for a second day; AUD/USD up after RBA minutes raised CPI. And iron ore bounces off 725 support.

 

 

 Jeremy Naylor | Writer, London | Publication date: Tuesday 21 June 2022 09:25

European indices outlook

Europe indices opened in positive territory for a second straight day.

Yesterday, the FTSE 100 ended the session 1.50% higher among the best performers in the region. In France, the CAC 40 recorded smaller gains as the latest parliamentary election clouded the political horizon.

President Macron’s party lost its absolute majority in the Palais Bourbon, putting his reform agenda at risk, and he will have to seek alliance with members of the opposition, most likely ex-President Sarkozy’s Les Republicains party.

APAC outlook

APAC indices rebounded overnight. Japan’s Nikkei led gains, closing 1.98% higher. Australia’s ASX 200 rose by 1.41%.

In Australia, Reserve Bank of Australia (RBA) Governor, Philip Lowe, signalled more rate hikes are to come as price pressures are continuing to build both globally and domestically. Inflation in the country is now expected to reach 7% by the end of the year, up from a previous forecast of 6%. "At the moment, the decision we will take is either 25 or 50 bps again at the next meeting," Lowe said when questioned on it, playing down the chance of 75 basis point (bps) hike.

US markets

US markets have reopened after a long weekend and are expected to show gains.

Last week major indices recorded their 10th week of declines. The S&P 500 lost 5.8% the previous five sessions, posting its largest weekly loss since March 2020.

Traders are waiting for existing home sales data, forecast to fall of around 5% in May on a month-on-month basis, in a context of rising interest rates that have a direct impact on the housing market.

Investors will also keep an eye on Jetblue Airways shares at the open, after it improved its offer for Spirit Airlines to $33.50 per share, trying to create the fifth-largest US airline. Spirit said its board will conduct an evaluation of Jetblue’s offer and update its shareholders at the end of the month.

UK outlook

Here in the UK, easyJet says it has entered into conditional arrangements with Airbus for the supply of 56 A320neo aircrafts, and the conversion of 18 A320neo to the same number of A321neo aircrafts.

Commodities

On the commodity markets, there is growing pessimism over iron ore demand in China. The metal plunged by more than 8% yesterday, dragging iron ore producers in its wake.

Watch out for Rio Tinto and BHP at the open in London, the two stocks are trading near six-month lows.

Oil prices continue to pare last week's losses, as traders seem now more concerned by tight supplies than recession dampening demand.

 

 

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Charting the Markets: 21 June

Are indices experiencing yet another false bottom, or is this the start of the turnaround? Forex markets are mixed but EUR/USD attempts an upside breakout. And is this the time to go long oil?

 

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Market data to trade on Wednesday: Nikkei; FTSE; USD/CAD; WTI

UK CPI will be the key focus for UK traders on Wednesday after the Bank of England’s prediction that inflation will hit 11% in October.

IGTV’s Daniela Sabin Hathorn looks at charts of the Nikkei, the FTSE 100, USD/CAD, and WTI ahead of the latest economic data out on Wednesday.

 

 

 

 

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Today’s coverage:

 

Indices: Europe expected down as economists expect demand to drop in a number of areas. Wall St lost all its earlier gains yesterday on Goldman Sachs recession warning – Asia down across the board  

FX: Watching GBP ahead of CPI data. USDJPY another new 23yr high after BoJ minutes. Watching USDCAD ahead of Canada CPI, EURUSD ahead of EZ consumer confidence, but big FX news likely to be around Powell testimony  

Equities: Earnings BKG MCRO

Commods: Expected demand shrinkage taking oil to 1mth low, base metals also down and NY Cotton now below support at 6mth lows. Gold down for 4th day  

 

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Early Morning Call: USD/JPY at new 23-year high; UK CPI; Powell testimony

Watching GBP ahead of CPI data; USD/JPY hits a new 23-year high after BoJ minutes; big FX news likely to be around Jerome Powell's testimony. Europe expected down; Wall Street lost all its earlier gains yesterday; Asia down.

 

 Jeremy Naylor | Writer, London | Publication date: Wednesday 22 June 2022

Is the equity rebound already over?

Yesterday, the main three US indices posted sizeable gains, all in excess of 2%.

But overnight, a totally different picture emerged, as all major indices in the APAC region showed losses. Technology stocks were the most affected, with South Korea’s tech index, Kosdaq falling more than 3%, followed loosely the Hang Seng Tech Index.

In Europe, FTSE 100, DAX and CAC 40 all opened lower, after recording modest gains on Tuesday.

In Japan, Bank of Japan (BoJ) minutes showed that many board members expressed the need to support the country's economy and therefore keep the bank's massive stimulus programme in place. Yet, other members have concerns regarding the recent yen volatility. "A few members said excessive fluctuations in the foreign exchange market over a short period of time, such as those observed recently, would raise uncertainties about the future and make it more difficult for firms to formulate their business plans".

But it was also stressed that the BoJ's monetary policy aims to achieve price stability, not to control exchange rate moves.

USD/JPY

Yesterday the yen fell further against the dollar. USD/JPY climbed above ¥136 for the first time since October 1998.

Sterling also is under scrutiny today. The latest data shows that UK consumer price index (CPI) set a new 40-year high in May. CPI rose by 9.1% on a year-on-year basis, in line with economists’ expectations.

Factory gate prices increased more than anticipated, by 15.7%. Also watch out for Canada inflation data at 1.30pm.

Jerome Powell testimony

Federal Reserve (Fed) chair, Jerome Powell, will head to the US congress later today for his semi-annual testimony.

He will first have to answer questions from the Senate Banking Committee, an exercise to be repeated tomorrow in front of the House Financial Services Committee.

Commodities

On the commodity markets, WTI and Brent fell in excess of 3%.

US President Joe Biden is today expected to call for a temporarily suspension of the 18.4-cents a gallon federal tax on gasoline, before meeting US oil bosses tomorrow to ask them to do more to bring fuel prices down.

China growth remains a concern for commodity traders. Dalian iron ore fell to a 16-week low, while copper now trades below $8,900 per tonne.

Gold is down for a fourth straight day, closing down on $1,821 support.

Finally, traders will remain attentive to the price of cotton. The commodity is down for a 10th consecutive day and yesterday broke its March 2022 support.

 

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Charting the Markets: 22 June

Bullish momentum fails to hold for indices. USD/JPY breaks above 136 for the first time since 1998. And the oil selloff continues.

 

 

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Market data to trade on Thursday: EUR/USD; LCO

Join IGTV’s Daniela Sabin Hathorn as she looks at chart of EUR/USD and Brent crude (LCO) ahead of the latest economic data out on Thursday.

 

 

 

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Today’s coverage:

 

Indices: Europe expected little moved from Wednesday’s cash session. Asia mostly up following a day of gains on Wall St despite Powell warning a US recession ‘a possibility’

FX: Watching USD ahead of Day II of Powell testimony. EURUSD up for 4th day ahead of flash PMI data. AUDUSD closing in on support  

Equities: Earnings - WINE & FDX

Commods: Copper at Feb 2021 levels on demand concerns. Oil holding Wednesday’s losses. Cotton down again near big support. Chicago Wheat breaks support. Gold no move

 

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Early Morning Call: Indices lower; copper falls; oil down

Europe expected little moved; Asia mostly up following gains on Wall Street despite Powell warning of potential US recession. Copper at Feb 2021 levels on demand concerns; oil holding Wednesday’s losses.

 

 

 Jeremy Naylor | Writer, London | Publication date: Thursday 23 June 2022 

Recession fears

Recession fears are very much in investors’ minds.

After a rather volatile start of the session, Japan’s Nikkei ended the day on modest gains.

Yesterday in the US, the S&P 500 fell by 0.13%, the Dow Jones and Nasdaq ended 0.15% lower. The US dollar has been losing ground overnight, particularly against the yen and the Australian dollar.

European outlook

In Europe indices opened lower, after having ended yesterday’s session in negative territory.

Today markets will remain attentive to the second part of Federal Reserve (Fed) chair, Jerome Powell’s testimony to Capitol Hill. Yesterday, Powell told the Senate banking committee that a US recession is "certainly a possibility" and warned that avoiding a downturn now largely depends on factors outside the Fed's control, this being, mainly energy prices.

The market is also waiting for the Fed's banks stress test results. Established following the 2007-2009 financial crisis, the Fed tests banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually.

Large US banks are optimistic they will receive a clean bill of health. But, more importantly, this exercise will reveal just how much cash they can return to shareholders in the form of dividends and share buybacks.

Outside of the Fed, investors will be attentive to purchasing managers’ index (PMI) data published throughout the day, that should give them clues as to the persistence of elevated inflation rates and the resilience of economic growth in the face of current headwinds.

Commodities

Elsewhere on the commodity market, copper is down to a 16-month low, as recession fears are being priced in, and took mining stocks in its wake. BHP Group now trades at a six-month low.

Oil prices have also been severely dented, now trading at a six-week low. A drop accentuated by the latest API data which revealed the biggest weekly increase in crude stocks since February.

US President Joe Biden called for a three-month suspension of the 18.4c federal gasoline tax, but met the opposition from lawmakers who expressed concerns that oil companies and retailers may pocket much of the savings.

Today Biden will meet major oil companies to not only ensure that they pass gas tax savings on to consumers, but also to ask them what can be done to increase the supply and lower the cost of gasoline.

Equities

Very little is scheduled on the equities front.

Tonight after the US closing bell, FedEx is expected to report an increase in quarterly earnings and sales. But, guidance will be key as the group continues to struggle with labour issues and costs at its low-cost delivery unit.

 

 

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Charting the Markets: 23 June

Indices mixed amid Fed chair Congress testimony. USD/JPY comes off near 24-year highs while EUR/USD and EUR/GBP capped. And gold and natural gas move cautiously higher, while oil price struggles.

 

 

 

 

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Market data to trade on Friday: USD/JPY; DAX

Japanese inflation will be in focus on Friday after the Bank of Japan (BoJ) left monetary policy unchanged last week. IGTV’s Daniela Sabin Hathorn looks at a chart of USD/JPY.

She also looks at a chart of the DAX ahead of the IFO business sentiment data in Germany.

 

 

 

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Today’s coverage:

 

Markets may be in bear mode but there’s always room for the great investment – Pink Floyd is seeking $500mln for its entire music catalogue incl ‘The Wall’ – a snip?

Indices: Europe expected up after another day of gains on Wall St. Asia up across the board

FX: Little or no firm direction awaiting Germany Ifo. Yen up for a 3rd day vs USD after CPI in JPN came in in line. GBP unchanged after consumer confidence fell a point to -41 - awaiting UK retail sales

Equities: FDX up 2% post mkt last night after earnings

Commods: Demand destruction taking grains and cotton down again and keeping pressure on oil. Gold consolidating at Thursday lows  

 

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Early Morning Call: Europe expected up; Fed stress test; recession fears

Europe expected up after another day of gains on Wall Street; Asia up across the board. Little or no firm direction awaiting Germany Ifo; yen up for 3rd day vs USD. And all 33 banks pass the US Federal Reserve's stress test.

 

 Jeremy Naylor | Writer, London | Publication date: Friday 24 June 2022

Recession fears

Recession fears and impact on demand have been the main topics this week.

Equity markets look like they could end the week on a positive note, a week that has nonetheless been very choppy, moving to the rhythm of Federal Reserve chair, Jerome Powell's testimony to US Congress.

Indices outlook

US indices ended the session higher yesterday, leading the Asia-Pacific region to a similar outcome. In Europe the main indices are all trading higher this morning.

Yesterday, Powell concluded his two-day testimony. The Fed chair again stressed the central bank's "unconditional" commitment to taming inflation, even if it poses risks to growth. Powell's words were echoed by Fed Governor, Michelle Bowman, who said that she supported 50 basis point (bps) hikes for "the next few" meetings after the July one.

The Fed also gave all 33 of the country's biggest banks a pass in the annual stress tests. The results pave the way for the banks to allow any dividends or share buybacks to go ahead.

Overnight in Japan, consumer price index (CPI) came in in line with expectations. CPI rose by 2.5% in May year-on-year (YoY), at the same pace of the previous month. same with core CPI, up 2.1% YoY.

This is the second month in a row that Japan's annual core consumer inflation topped the Bank of Japan's (BoJ) target. But with wage growth subdued, the BoJ's focus is likely to remain the same: supporting a sluggish economy rather than fighting inflation.

Here in the UK, Gfk consumer confidence fell to -41 in June, setting a new record low. Retail sales fell 0.5% in May compared to April. Economists had forecast a 0.7% fall.

Later this morning, the German Ifo institute is set to release its latest business climate data. Economists expected it to stay broadly unchanged, down to 92.9 in June from 93 the previous month.

On the currency front, the dollar shows signs of weakening. The dollar basket is on course to post its first weekly loss in four.

Commodities

The storm has passed on the commodity markets, for now. Growing recession fears severely affected energy, material and agricultural prices.

There is very little move on the oil market this morning, but after two days of heavy losses, WTI and Brent are firmly set for a third straight week of decline.

Copper also trades up this morning, but this week's demise means that the metal is about to post its worst weekly loss since May 2021.

There was a similar trading pattern for wheat in the last few days. We've seen a timid recovery this morning, but following five sessions of losses.

And finally the cotton price has slumped, clocking an 11th straight day of decline, and sending the price below $1 per pound for the first time since September 2021.

 

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Charting the Markets: 24 June

European indices helped by stronger US and Asian markets. USD/JPY continues to slide while EUR/USD and EUR/GBP are capped. And gold, WTI and aluminium prices continue to slide.

 

 

 

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For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK.

IGTV (@IGTV) | Twitter

Today’s coverage:

 

VIX down for 7th day longest period of declines in 15mths – G7 declares it will stand with UKR for as long as it takes

Indices: Markets expected up in Europe after a big snap-back up on Friday on reduced rate cut expectations – it is STILL only a retracement. Asia up across the board  

FX: USD closing in on 12-day low today MACD turns negative. Today durable goods orders at 1:30pmUK. Inflation data this week: GER on Wed: US on Thur: EZ on Fri  

Equities: Awaiting NKE earnings after the bell – expected down, guidance will be key  

Commods: Gold & oil up for a 2nd day in a row. Base metals recovering Cotton & wheat down for 6th day

 

 

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Early Morning Call: Europe expected up; Nike earnings; energy market

Markets expected up in Europe after a big snap-back on Friday on reduced rate cut expectations; Asia up across the board. Awaiting Nike earnings after the bell - expected down, guidance will be key. And gold, oil up for 2nd day.

 

 

 Jeremy Naylor | Writer, London | Publication date: Monday 27 June 2022 

Equity market overview

Equity markets started the week in positive territory, following Friday’s US stocks rally.

Hong Kong’s Hang Seng leads gains in the region and the ASX 200 ended the session close to 2% higher. Europe also opens in positive territory.

In China, the latest data shows industrial profit growth is slowing as high raw material prices and supply chain issues continue to disrupt factory activity and squeeze margins. During the first five months on the year, profits earned by China's industrial firms increased by only 1% compared to the same period in 2021. Last month the year-to-date increase was 3.5%.

Elsewhere, Russia yesterday failed to make a $100 million interest payment, marking its first debt default since 1998. Russia was on an inevitable path to default since sanctions were first imposed by the US and European Union (EU). These restricted the country's access to the international banking networks which would process payments from Russia to investors around the world.

Currency markets

On the currency market, the greenback is losing ground mainly against the Australian dollar and the yen. Markets are awaiting US durable goods orders for the month of May and pending home sales.

Equities

Nike reports quarterly earnings tonight and is expected to show a fall in quarterly revenue.

According to the mean estimate from 22 analysts, the group is forecast to report a 2.2% decrease in revenue to $12.07, and earnings of 81 cents per share. For the same quarter last year, the company reported earnings of 93 cents per share.

Nike is no exception. Like other retailers, the company has been facing a series of headwinds in the past few quarters: factory shutdowns in China and Vietnam which have affected supply chains, and followed by port congestion in the US, have affected not only sales but also margins.

Analysts are also aware that a strong US dollar will have an impact on sales made outside the US.

Also reporting later this week are Micron Technology and General Mills on Wednesday, and Walgreens Boots Alliance and Constellation Brands.

Commodities

The commodity sector remains very much under close watch, after suffering heavy losses last week. Investors are trying to assess by how much global demand will be impacted by a potential recession.

The oil market is little changed this morning, after recording a third straight week of decline. Last Friday, the Baker Hughes total rig count increased by 13 to 753. As Usual, this rise was mainly due to the increase in number of oil rigs in operation, up to 594 from 584. The number of operating gas rigs increased by three to 159.

Copper, zinc and lead are rebounding this morning, showing gains in excess of 1%.

 

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Charting the Markets: 27 June

Markets recover, but it still may not be time to go long for the long-term. Trading the double top in USD/CAD – can it complete? And the oil markets rally resumes.

 

 

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Market data to trade on Tuesday: EUR/USD; CAC 40; WTI

IGTV’s Daniela Sabin Hathorn looks at charts of EUR/USD, CAC 40, and WTI ahead of the latest economic data out on Tuesday, which includes consumer confidence in Germany and France, and the latest API crude oil inventories.

 

 

 

 

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For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK.

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Today’s coverage:

 

VIX down for an 8th day in a row day

Indices: Europe consolidates at Monday’s levels apart from UKX which continues its climb. Asia mixed  

FX: EURUSD awaiting German consumer confidence

Equities: NKE good Q4 BUT stk fell 4.6% after poor guidance. 4 US banks have raised dividends: MS, GS, BAC & WFG, MS also $20bln shr buyback – JPM & C have kept payment flat. JBLU ups bid for SAVE

Commods: Oil up for a 3rd day as G7 puts price cap on Russian oil. Gold remains  range bound

 

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Early Morning Call: VIX still down; US banks raise dividends; Nike down

VIX down for 8th consecutive day. European indices consolidate at Monday’s levels apart from UKX which continues its climb; Asia mixed. Four US banks raise dividends. Nike sees good Q4 but stock falls 4.6% after poor guidance.

 

 Jeremy Naylor | Writer, London | Publication date: Tuesday 28 June 2022 

Indices outlook

The session was mixed in the Asia-Pacific region overnight.

The Japan 225 and Australia 200 closed in positive territory, but Hong Kong’s Hong Kong HS50 traded lower.

This followed the US session in which all three main indices ended in the red, the US Tech 100 posting the worst performance with a decline on 0.72%.

In Europe, the FTSE 100, Germany 40 and France 40 opened higher this morning. In Germany, Gfk consumer confidence fell to -27.4 in July, broadly in line with economists’ expectations.

In the US, economists await a series of macroeconomic indicators. Goods trade balance and wholesale inventories come in at 1.30pm UK time, followed by the S&P/Case-Shiller home price index at 2pm, and Conference Board consumer confidence at 3pm.

US banking sector

Look out for the US banking sector at the open today. Following the Federal Reserve's stress test results late last week, which gave the green light to all 33 banks to raise dividends or increase share buybacks, six of the largest firms have announced yesterday after market close what their plans would be.

Four of them - Morgan Stanley Goldman Sachs BDC Inc, Bank of America Corp (All Sessions) and Wells Fargo & Co (All Sessions) - have decided to hike their dividends. Morgan Stanley also announced a $20 billion share buyback programme.

Morgan Stanley said it plans an increase to 77.5 cents per share and a share buyback program of $20 billion. Goldman Sachs will hike its dividend by 25%, to $2.50 per share. Bank of America raises its dividend by 5% to 22 cents per share and Wells Fargo expects to hike its dividend to 30 cents from 25 cents a share.

JPMorgan Chase & Co (All Sessions) and Citigroup Inc (All Sessions) have decided to keep their dividend flat, respectively at $1 and 51 cents per share. Goldman Sachs, Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are all-sessions stocks on the IG platform.

Nike earnings

NIKE Inc (All Sessions), another all-sessions stock, produced a better-than-forecast quarterly report yesterday.

Earnings came in at 90 cents per share, on revenue of $12.23 billionl. Analysts had expected earnings per share (EPS) of 81 cents and revenue of 12.07bn.

However, share price fell in extended hours as the group forecast first quarter revenue below estimates. Nike Chief Financial Officer, Matthew Friend, said the company is "taking a cautious approach to Greater China, given uncertainty around additional Covid disruptions." and expects first quarter revenue to be flat to slightly up, below estimates of a 5.1% increase.

Nike also has to deal with its stock. The company's inventories rose 23% to $8.4 billion at the end of May. Supply disruption means that more products remain in transit, and late arrivals will have to be discounted, putting pressure on the group's gross margins.

Commodities

Oil prices are rising this morning. According to Reuters, citing a report prepared ahead of the OPEC+ meeting scheduled on Thursday, the organisation has cut its projected 2022 oil market surplus to one million barrels per day, from 1.4 million previously.

 

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Charting the Markets: 28 June

FTSE 100, DAX and S&P 500 moving higher after Monday's indecision. EUR/USD, EUR/GBP and GBP/JPY are all pointing higher. And the oil price is rallying for a third day while gold and aluminium stabilise.

 

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Market data to trade on Wednesday: EUR/GBP; S&P 500

Consumer prices will be back in focus in Germany on Wednesday when the June CPI data will be released.

Markets are expecting little change from the reading the previous month and IGTV’s Daniela Sabin Hathorn takes a look at the latest EUR/GBP chart.

She also looks at the S&P 500 ahead of the final first quarter GDP reading in the US.

 

 

 

 

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For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK.

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Today’s coverage:

 

Indices: Europe expected to open slightly lower as an upward move in UST yields and a bigger drop than expected in consumer confidence spooked Wall St. Asia fell. UKX failed to break 200-day SMA

FX: That rise in US yields has pushed up USD. In the face of the USD move AUDUSD little moved despite far better than expected Aussie retail sales in May. JPY also failing to move on good retail sales data in JPN

Equities: Earnings – MUL MOON PROC & GIS. TSLA announces 200 job losses at its Autopilot facility in California

Commods: Oil fails at 2wk highs as OPEC meets to discuss output strategies. Gold holds 2wk lows. Watching Coffee Robusta as it nears support

 

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Early Morning Call: rising yields hit stocks; watching USD; oil volatility ahead

Europe expected to open slightly lower as an upward move in UST yields and a bigger than expected drop in consumer confidence spooked Wall Street. That rise in US yields has pushed up USD. Oil fails at 2-week highs as OPEC meets.

 

 

 Jeremy Naylor | Writer, London | Publication date: Wednesday 29 June 2022 

Indices outlook

Indices in the Asia-Pacific region fell overnight, following US indices’ negative performance.

The Wall Street fell by 1.56%, US 500 by 2.01%, and the US Tech 100 by 2.98%. In Japan, Japan 225 ended the session 0.96% lower. Retail sales in the country rose by 3.6% in May year-on-year, compared to economists’ expectations of 3.3%. Consumer confidence in Japan fell to the lowest since January 2021. Australia fell 0.94%. Retail sales also beat expectations, rising by 0.9% in May month-on-month, as consumers spent more on eating out and in department stores, suggesting demand is proving resilient in the face of surging inflation and rising interest rates.

In Europe, major indices managed to end Tuesday’s session higher, but are down this morning. Yesterday evening, the French government cut its 2022 gross domestic product (GDP) forecast to 2.5% from 4%.

Currencies

On the currency market, the US dollar is giving back some of the gains realised yesterday afternoon. The dollar index is once again trading above 104.

Currency traders are awaiting the joined intervention of European Central Bank (ECB) president, Christine Lagarde, Federal Reserve (Fed) chairman, Jerome Powell, and Bank of England (BoE) governor, Andrew Bailey, at the ECB forum in Lisbon this afternoon.

Potential moves on the currency market could happen at the release of the latest consumer price index in Germany at 1pm UK time, and the final reading of US GDP for the first quarter at 1.30pm.

On the FTSE 100, Mulberry reinstated its final dividend, as the luxury group reported a 32% increase in revenue and profit before tax of £21.3 million, a fivefold increase on 2021.

Over in the US, watch out for General Mills Inc and Bed Bath & Beyond Inc as both are expected to report quarterly earnings before the market open.

Tesla Inc announced overnight that it is closing its office in San Mateo, California, and eliminating an estimated 200 jobs there as part of a broader cost-cutting effort at the business.

Commodities

On the commodity market, Oil - US Crude and Oil - Brent Crude hit two-week highs overnight.

Yesterday evening, the latest API data showed that crude oil inventories fell by 3.8 million barrels last week. Gasoline stocks rose by 2.85 million barrels, and distillates inventories increased by 2.6 million barrels.

This afternoon, the EIA is due to report two weeks worth of inventory data. Last week it was unable to do so because of technical difficulties.

Oil traders are also gearing up to tomorrow’s OPEC+ meeting. US president, Joe Biden, is counting on OPEC countries to produce more oil, but earlier this week, on the sidelines of the G7 meeting, French president Emmanuel Macron told his US counterpart that UAE was already producing at maximum capacity, and a Saudi Arabian output increase would be limited.

 

 

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This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

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Charting the Markets: 29 June

Bears in control of indices again - we look at S&P 500, DAX 40, FTSE 100. CB Forum may provide further clues on policy changes - we look at USD/JPY, USD/CAD and EUR/GBP. And oil is bouncing higher as gold's range trade continues.

 

 

16 Candlestick Patterns Every Trader Should Know | IG US

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Market data to trade on Thursday: Hang Seng; GBP/USD; Brent; MU

As markets focus on the ongoing central bank forum in Portugal, IGTV’s Daniela Sabin Hathorn looks at charts of the Hang Seng, GBP/USD, Brent, and Micron Technology ahead of the latest economic and corporate data out on Thursday.

 

 

 

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For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK.

IGTV (@IGTV) | Twitter

Today’s coverage:

 

Indices: Looking for a small drop in Europe. Overnight Chinese mkts outperformed on the upside as China data benefits from a release from Covid lockdowns. US tech underperforming again on Powell rates statement    

FX: USD on its way up again. USDJPY new 23 ½ yr high – JPN worst factory output in 2yrs, . USDCNH awaiting breakout as China PMI data climbs as Covid lockdowns end. GBP awaiting monthly UK GDP and EUR German retail sales  

Equities: MU fiscal Q3 after the bell tonight. Earnings today STZ and WAG   

Commods: Oil holding at Wednesday’s lows the OPEC mtg closes today not expecting any big changes. Gold down for 4th day by only a small margin

 

https://community.ig.com/igtv/

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Early Morning Call: China indices outperform; GBP/USD down; oil price falls

Small drop expected in Europe; Chinese markets outperformed overnight as China data benefitted from a release from Covid lockdowns; US tech underperforming. USD on its way up again, while oil is holding at Wednesday’s lows.

 

 Jeremy Naylor | Writer, London | Publication date: Thursday 30 June 2022 09:20

Equity markets

European equity markets started Wednesday’s session lower after a mixed session in the US and APAC.

In New York, only the Wall Street managed to end in positive territory, up 0.27%. The US 500and US Tech 100 fell by 0.02% and 0.03% respectively.

In the Asia-Pacific region, the Japan 225 and Australia 200 ended the day lower. The Hong Kong HS50 spent most of the session in the green but is down in the last hour of trading. China mainland indices rose after the NBS manufacturing PMI came back above 50 after three months of contraction. It rose to 50.2 in June from 49.6 in May.

NBS non-manufacturing PMI jumped to 54.7 in June from 47.8 in May, the fastest rise in 13 months. Japan recorded its worst monthly drop in factory output in two years. Industrial production fell by 7.2% in May month-on-month (MoM), much more than the 0.3% fall expected by economists. This marks the sharpest monthly decline since a 10.5% MoM drop in May 2020.

Here in the UK, final first quarter (Q1) gross domestic product (GDP) data was in line with expectations. The UK economy has expended 0.8% quarter-on-quarter.

Over in the US, markets await core the PCE price index for May. Economists expect the index to decline by a tenth of a percentage point to 4.8% on a year-on-year basis. This could be the next test for the greenback. Yesterday the dollar gained on renewed concerns about higher interest rates and a potential global recession.

Speaking at the European Central Bank (ECB) forum in Portugal, Federal Reserve chair, Jerome Powell, repeated that is was important to bring inflation down, even if measures taken would cause economic pain.

ECB president, Christine Lagarde, made similar remarks. Also expected: personal income and spending for the month of May and initial jobless claims.

OPEC+ meeting

The OPEC+ meeting concludes today, and already sources say that no big policy change is to be expected this month.

At its last meeting, OPEC+ decided to raise output each month by 648,000 barrels per day (bpd) in July and August, instead of a 432,000 bpd output increase during three months.

Yesterday EIA inventories showed crude inventories fell by 2.8 million barrels last week, exceeding analysts' forecast of a 569,000-barrel drop.

U.S. gasoline stocks rose by 2.6 million barrels, distillate stockpiles rose by 2.6 million barrels. The EIA added that Oil - US Crude in the Strategic Petroleum Reserve fell by seven million barrels last week to 497.9 million barrels, its lowest since April 1986. US crude production rose by 100,000 barrels per day to 12.1 million bpd, its highest level since April 2020.

Corporate news

Finally, on the corporate front, Walgreens Boots Alliance and Constellation Brands Inc are expected to report quarterly earnings before the market open. After the US closing bell it will be the turn of Micron Technology Inc (All Sessions) to publish its quarterly results. Analysts expect earnings of $2.46 per share, on revenue of $8.68 billion. Markets will be particularly attentive to guidance, in a context of declining prices for memory components and higher logistics costs.

Yesterday the US semiconductor sector took a tumble after Bank of America Global Research shared its opinion that the industry is in for a downturn, citing a slowing 5G smartphone cycle or high inventories for some, China smartphone weakness for others. The Bank of America Corp (All Sessions) lowered price targets for over 20 chip stocks. All the big names are in that list: NVIDIA Corp (All Sessions), Broadcom Inc, Intel Corporation, AMD and Micron Technology Inc (All Sessions).

 

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This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

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