Asian equities rebound while the oil rally halts

Tuesday, June 24, 2014

Asian equity markets rebounded and posted fresh gains overnight. The Hang Seng index recovered from recent losses and corrected higher after gaining more than 0.45% to retest 22,900 points. The Nikkei remained in consolidation mode, trading sideways around 15,370. The JPY traded around 102.00, supported by the recent solid Japanese PMI manufacturing data.

Nikkei Index

NKY Index (Nikkei 225)  2014-06-24 09-01-56

The US equity markets ended fairly flat yesterday, as mixed US economic data failed to provide a clear direction to the markets. The Dow Jones index finished slightly lower at 16,937 points (-0.06%), while the S&P 500 ended the session fairly unchanged at 1692.61 points. The USD index held above 80.2 against a basket of currencies while the EUR edged higher above 1.36 despite the recent disappointing PMI manufacturing data.

Today, the main focus will turn to the release of the German Ifo Survey for details in current German market conditions and expectations. In the US, investors will be watching for the release of the Home Price data for April as well as New Home Sales figures for May and the Richmond Fed composite index in June.

Energy: Brent crude remained under some pressure falling below $114 per barrel, as oil supplies in the region of Iraq seem to be unaffected after recent data showed near record high levels of Iraqi’s oil exports. Please note that Iraq is the second largest OPEC oil producer. Furthermore, the release of the weekly API oil inventories report will provide an insight about the levels of the US oil inventories. According to a recent Thomson Reuters survey, it is expected a decline of 1.3 million barrels in crude oil inventories, and large builds of 1.0 and 1.8 million barrels in distillate and gasoline stocks, respectively.  

Brent Front Month   

COQ4 Comdty (BRENT CRUDE FUTR  A 2014-06-24 09-02-39

Cocoa: Heavy rains in the coastal and southern regions of Ivory Coast’s main cocoa growing zone last week raised serious concerns for the last stage of the April-to-September mid-crop, farmers said on Monday, according to Reuters. ICE Cocoa retreated by 0.9% yesterday to retest the 3080 area.

ICE Cocoa Front Month 

CCU4 Comdty (COCOA FUTURE      S 2014-06-24 09-03-14


Events for today:





Ifo Survey




Monthly Home Price




New Homes Sales




Richmond Fed


All times UK Local Time

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