Global Economic Daily - 07/03/2024
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Quote of the Day: No one can figure out your worth but you. – Pearl Bailey
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Equities: Stocks rose Wednesday, with the market turning a corner following back-to-back losing sessions on Wall Street. The?S&P 500?added 26.11 points to 5,104.76, while the?Nasdaq 100?gained 119.71 to 18,017.57. The?Dow Jones Industrial Average?traded higher by 75.86 points to close at 38,661.05. Wednesday’s advances mark a reprieve after the three major averages notched?two straight days of declines, pulling the market off record highs. Despite Wednesday’s action, the three major indexes were still down on the week. Traders kept an eye on the first of two Capitol Hill appearances this week from Federal Reserve Chair Jerome Powell, who said on Wednesday in?prepared remarks?that the central bank could lower interest rates this year. However, the Fed chief said the bank is not immediately ready to cut the cost of borrowing money. When questioned by the House Financial Services Committee on Wednesday, Powell noted that the central bank would like to see more data before it cuts rates. He’s also slated to appear before the Senate Banking Committee on Thursday. Investors are still in “wait-and-see mode” following Powell’s remarks. TECHNICAL OUTLOOK - The Dow and S&P are above the 14, 21 day moving average.
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Crude Oil: Oil prices edged up about 1% on Wednesday on a smaller-than-expected build in U.S. crude inventories, a big withdrawal from distillate and gasoline stocks and remarks by the U.S. Federal Reserve chief that he still expects interest rate cuts this year. The U.S.?Energy Information Administration?said energy firms added a smaller-than-expected 1.4 million barrels of crude into stockpiles during the week ended March 1, while distillate and gasoline inventories fell by much more than expected. Energy firms also pulled 4.1 million barrels out of distillate stockpiles, which include diesel and heating oil, and 4.5 million barrels out of gasoline stockpiles last week. That compares with analysts forecasts for much smaller weekly withdrawals of 0.7 million barrels of distillates and 1.6 million barrels of gasoline. China?announced?a 2024 economic growth target of around 5%, though the lack of big-ticket stimulus plans to bolster its?struggling economy?raised concerns of sluggish oil demand growth. Meanwhile, talks on a ceasefire and hostage exchange between?Israel and Hamas?were at an impasse as the humanitarian crisis in Gaza deepened and a merchant?vessel was on fire?after a fatal attack in the Red Sea. The disruption in oil tanker movements due to Red Sea attacks by the Iran-backed Houthi militia in Yemen, along with the latest?OPEC?supply cut extension, was causing supply tightness, especially in Asian markets. That tightness was apparent as Saudi Arabia, the world's biggest oil exporter, announced slightly higher prices for April crude sales to Asia, its biggest market. TECHNICAL OUTLOOK - The Crude is above the 14, 21 day moving average.
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Metals: Gold and silver prices are higher and near their daily highs in late-morning U.S. trading Wednesday. Nearby gold futures prices hit another record high today, at $2,157.50. The precious metals are getting a lift from remarks by the head of the U.S. central bank that the marketplace deemed as slightly dovish on monetary policy. Technically, April gold futures bulls have the solid overall near-term technical advantage. A three-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at December high of $2,171.50, basis April futures. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $2,088.10. May silver futures prices were poised to close at a two-month high close today. The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $22.47. TECHNICAL OUTLOOK – Gold and silver are both well above the 14, 21 day moving average?
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DISCLAIMER: The Information and data contained herein was obtained from sources deemed reliable. The accuracy and completeness are not guaranteed
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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