Another quiet session in terms of macro data today, prompting European equity indices into a slight retreat. London’s blue chip index pared recent gains as it traded lower for a second session while both the CAC and DAX experienced modest selling pressure throughout the day as profit warnings from Vallourec and Lufthansa pared appetite for equities. Stocks on Wall Street slipped lower, with both the S&P 500 and DJIA struggling for direction. Trading activity has been relatively subdued this week as a lack of key macro data has left investors struggling to justify moves higher, however, the global equity market uptrend still remains firmly intact.
EIA crude inventory statistics released earlier on saw crude stockpiles in the US decline by 2.6m barrels w/w against forecasts of a 1.9m barrel draw. Gasoline stocks gained 1.7m barrels versus forecasts of a 0.8m barrel week on week increase while distillate stocks added 860K barrels w/w, less than the 1.2m barrels expected. Front month WTI prices traded towards $104.80/bbl before pulling back towards $104.50. Further gains may struggle to hold above $105/bbl after intraday gains tested this level yesterday and the emergence of a triple top forming around this area may present significant resistance in the near term.
The dollar index pulled back slightly after intraday moves higher fell just short of 80.900, last trading towards 80.760 as it traded largely under pressure from a stronger yen. The resulting move lower offered some upside to spot gold prices, which rallied for a second straight session, trading as high as $1,265/oz throughout the day before paring some intraday gains to find stable support towards $1,262/oz.