Brent crude futures remain near a 13-month low

Friday, August 15, 2014

Asian equity markets edged higher overnight, with the Hang Seng Index climbing more than 0.6% to retest 24,960. The Nikkei posted limited gains, consolidating around 15,300. In general, Asian-Pacific equities have been on track to end the week with their biggest weekly jump in 5 months, since March 2014.

Hang Seng Index - weekly performance since mid-2011

HSI Index (Hong Kong Hang Seng I 2014-08-15 08-56-05

Iraq’s Prime Minister, Nouri al-Maliki, announced late on Thursday evening that he will step down after eight years after remarkable local and international pressure, following an article in Financial Times. He also recommended the person chosen by his own political party to succeed him.

European equity markets opened the session fairly strong this morning, posting solid gains. The US equity markets finished higher on Thursday with the Dow Jones index adding more than 0.35% to break above 16,700. The S&P 500 Index also climbed higher by 0.43%, setting a more bullish tone across the global equity markets.   

Energy: Brent front month futures edged higher in early trading this morning trading around $102 per barrel, supported by a softer USD. However, Brent crude futures remain near a 13-month low below $103 per barrel as a gloomy macroeconomic picture raised renewed concerns about a slowdown in the oil demand from the US and Eurozone. Oil fundamentals continue to remain fairly bearish following increasing levels of oil inventories in the US.

Brent Front Month Futures Daily Chart

CO1 Comdty (Generic 1st 'CO' Fut 2014-08-15 08-57-40

Gold traded above $1,300/ounce, suggesting the potential for a second-consecutive week of solid gains as disappointing global macroeconomic data and geopolitical tensions supported the yellow metal's safe-haven appeal.

XAU- Gold Daily Chart

XAU Curncy (Gold Spot   $_Oz )  D 2014-08-15 09-01-38

 

Events for today:

 

1330

US

Aug

NY Fed Manufacturing

1330

US

Jul

PPI Final

1415

US

Jul

Industrial Output

1455

US

Aug

Michigan Survey (Prelim)

 

All times UK Local Time

Topics: USD, Asia, Gold, Europe, Energy, Brent, US, Iraq
More from: Myrto Sokou