Global Economic Daily - 28/02/2024
Straits Financial Group
Leading Asian Derivatives Brokerage Providing Bespoke Solutions to Global Clients
NEWS AND MARKET COMMENTARY
Global Equities
Global Fixed Income
Currencies
Energy
Metals
Global Politics/News
领英推荐
?
Financial
Closing Commentary
Quote of the Day: I believe that every human mind feels pleasure in doing good to another. – Thomas Jefferson
?
Equities:
Stocks were mixed on Tuesday. The S&P 500 and the Nasdaq Composite ended Tuesday’s session with modest gains as investors prepared for key inflation data to be released later this week. The?S&P 500?inched up 8.65 points to 5,078.18. The?Nasdaq?100 added 37.71 points to end at 17,971.05. The?Dow Jones Industrial Average?fell 96.82 points to close at 38,972.41. The market on Tuesday really doesn’t have a lot of direction. Indeed, the utilities sector outperformed the broader market, rising about 1.9%. Communications services also rose 1%, while the technology sector added less than 0.1%. Those moves follow a?losing day?on Wall Street that pulled the?Dow?and?S&P 500?off record highs seen last week after Nvidia’s stellar earnings report. The?latest consumer confidence numbers?also fell on worries regarding a potential labor market slowdown and polarized political landscape, according to a Conference Board gauge released Tuesday. The board’s Consumer Confidence Index declined to 106.7, which was lower than the downwardly revised 110.9 in January and below the Dow Jones estimate for 115.1. Data from the U.S. Department of Commerce released on Tuesday showed that orders for long-lasting goods?declined?more than expected in January, with the leading factor being a large drop in demand for transportation. Those come before January’s reading of the closely watched personal consumption expenditure price index, as well as data on personal income, slated for release on Thursday. Investors will watch these releases for future clues into the health of the economy and for insights into the path of monetary policy. TECHNICAL OUTLOOK - The Dow and S&P are above the 14, 21 day moving average.
Crude Oil:
Oil prices rose more than $1 a barrel on Tuesday as sources said that OPEC is considering extending voluntary oil output cuts into the second quarter to provide additional support. OPEC agreed in November to voluntary cuts totalling about 2.2 million barrels per day for the first quarter this year, led by Saudi Arabia rolling over its own voluntary cut. The producer group could keep the additional cuts in place until the end of the year. Also supporting prices on the supply side, Israel and Hamas, as well as Qatari mediators, all sounded notes of?caution?about progress towards a truce in Gaza, after U.S. President Joe Biden said he believed a ceasefire could be reached in under a week to halt the war for Ramadan. Yemen's Houthi spokesperson?said?the group's operations in the Red Sea would stop only when Israeli "aggression" against Gaza ends. Houthi missile and drone attacks on international shipping have driven up the cost of transporting energy products and contributed to a tighter market. In the U.S., crude inventories were expected to have risen about 2.7 million barrels last week, while distillates and gasoline stockpiles were seen falling. The American Petroleum Institute will release the industry group's weekly U.S. crude inventories data at 4:30 p.m. EST, followed by the government's report on Wednesday morning. Markets expect to see some improvement in Chinese oil demand as improving travel demand over the Lunar New Year holiday outweighed worries of slowing macro-economic indicators. Russian authorities announced a?six-month ban?on gasoline exports from March 1 to compensate for rising demand and to allow for refinery maintenance. Both oil benchmarks had settled more than 1% higher on Monday after declines of 2-3% over the previous week as markets factored in a greater likelihood that cuts to interest rates might take longer to come than previously expected. TECHNICAL OUTLOOK - The Crude is above the 14, 21 day moving average.
Metals:
Gold prices are a bit firmer and silver prices a bit weaker near midday Tuesday. Gold is seeing some short covering in the futures market and some perceived bargain hunting in the cash market. Precious metals traders are awaiting the next fundamental even to provide a spark to trading action. That may come with some U.S. inflation data coming out later this week. Technically, April gold futures bears have the slight overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. March silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $23.56. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. TECHNICAL OUTLOOK – Gold is above the 14, 21 day moving average, while silver is at the average.
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
?
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.
Singapore | United States | Indonesia | China | Dubai
Straits Financial, 9 Temasek Boulevard #28-02 Suntec Tower Two Singapore 038989, Singapore, Singapore, +65 6672 9668