Brent futures plunge for a fifth consecutive session

Wednesday, September 10, 2014

Asian equity markets retreated sharply overnight with the Hang Seng index declining more than 400 points (-1.74%) to retest 24,750 amid concerns about a slowdown in China’s growth. The MSCI Asia Pacific Index declined for a fifth consecutive session falling 0.6%, while the Nikkei index managed to close in positive territory, adding almost 40 points (+0.25%). The USD spiked to a six-year high against the yen, adding further pressure to the Asian markets.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-09-10 09-07-20

The US equity markets posted fresh losses yesterday with the Dow Jones Index retreating almost 100 points (-0.57%) following increasing speculation that the US interest rates will increase sooner than initially expected. The S&P 500 and Nasdaq indices fell by 0.65% and 0.87%, respectively, while the USD index has remained fairly strong around 84.2. Apple fluctuated strongly yesterday following the release of the iPhone 6 and 6 plus as well as the widely expected Apple iWatch, however its stock is up 22% this year.

European equity markets opened the session lower this morning. The euro tested a new low yesterday at 1.2860 against the dollar but rebounded this morning towards 1.2950. Sterling has also found some support at the recent low of 1.6060 and the GBP has been trading around 1.6140 against the dollar this morning. 

EURUSD Spot

EUR Curncy (Euro Spot )  2014-09-10 09-06-41

Energy: Brent front month futures retreated sharply to reach a 17-month low yesterday and closed at $99.16 per barrel, falling sharply for a fourth consecutive session. The high levels of crude oil stocks and the strong USD weigh heavily on market sentiment, while oil demand from the US and China remains fairly low. The release of the US weekly DOE oil inventories figures this afternoon could provide an outlook about the current stock levels.

Brent Futures plunge

CO1 Comdty (Generic 1st 'CO' Fut 2014-09-10 08-59-36

 

Events for today:

 

1500

US

Jul

Wholesale Inventories

1530

US

w/e

EIA Energy Stocks

 

 

All times UK Local Time

Click here to view the latest Sucden Financial monthly calendar

 

 

More from: Myrto Sokou