Brent futures extend recent losses

Tuesday, September 02, 2014

Asian equity markets posted strong gains overnight. The Nikkei Index surged almost 200 points (+1.24%) towards 15,670, while the Hang Seng index edged higher trading above 24,770. Australia’s central bank left interest rates unchanged a 2.5%. The USD hit a seven-month peak against the yen, continuing its recent strong rally.

European equity markets opened the trading session fairly strong, posting robust gains. The DAX index climbed more than 0.7% in early trading, while the CAC and the London benchmark index rose more than 0.3%. The release of the Markit/CIPS construction PMI data in the UK as well as Eurozone’s Producer Prices could offer further momentum to the European equity markets. The euro continues to remain under pressure, trading near 1-year low at 1.31.

Energy: Brent front month futures retreated sharply yesterday to retest $102.50 per barrel. It seems that investors remained cautious following the fairly disappointing PMI manufacturing data from the Eurozone and China. In addition, geopolitical risks in Russia and Middle East continue to dominate the markets.

Brent Oct Futures

COV4 Comdty (BRENT CRUDE FUTR  O 2014-09-02 09-09-03

Gold retreated sharply to its lowest level in nearly a week to retest $1270/per ounce as the stronger USD offset any possible safe-haven demand from lower equities and persistent tensions between Russia and Ukraine. Silver also remained under pressure, trading near $19.40.

XAU - Gold Spot

XAU Curncy (Gold Spot   $_Oz )  D 2014-09-02 09-09-23

 

Events for today:

 

0930

UK

Aug

Markit/CIPS Construction PMI

1000

EZ

Jul

Producer Prices

1445

US

Aug

Markit Manufacturing PMI

1500

US

Aug

ISM Manufacturing

1500

US

Jul

Construction Spending

1500

US

Sep

IBD Sentiment

 

All times UK Local Time

 

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