Brent futures plunge below $100 per barrel

Tuesday, September 09, 2014

Asian equity markets traded fairly mixed overnight. The Hang Seng index fell by 50 points (-0.2%) overnight, while the Nikkei Index extended gains and climbed higher, adding 0.3% towards 15,750.

The London equity benchmark index remained under pressure in early trading this morning, consolidating around 6,800. Investors remain cautious about renewed concerns that Scotland’s voters may opt for independence in next week’s referendum. Sterling has fallen sharply for a sixth consecutive session to retest 1.6065 against the USD. In the meantime, BRC retail sales in the UK surged by 1.3% in August, beating expectations of a 0.3% rise.

GBPUSD

GBPUSD Curncy (GBP-USD X-RATE)  2014-09-09 09-23-51 

Energy: Brent front month futures remained under heavy pressure yesterday, breaching below $100 per barrel for the first time since June 2013. Brent futures plunged and tested a low at $99.36 yesterday but managed to finish the trading session at $100.20. The recent tepid US economic data and the strong USD currently weigh heavily on market sentiment in the oil market. According to Thomson Reuters, a Chinese trading firm booked the world's largest super-tanker to store crude oil at sea adding to a growing flotilla of vessels used for floating storage, after Brent futures breached below the psychological level of $100 per barrel.

Brent Front Month Futures

CO1 Comdty (Generic 1st 'CO' Fut 2014-09-09 09-23-20

 

Precious Metals: Gold consolidated near its lowest level in three months around $1250 per ounce following sharp declines overnight as the USD index traded at 14-month high against a basket of currencies, reducing the yellow metal's appeal as a currency hedge.

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  2014-09-09 09-23-37

 

Events for today:

 

0001

UK

Aug

BRC Retail Sales

0930

UK

Jul

Trade Balance & Non EU

0930

UK

Jul

Industrial & Mfg Output

1500

UK

Aug

NIESR GDP Estimate

 

 

All times UK Local Time

 

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