Option Banque Technical Analysis Report: 16-Sep-2015
Posted by Option_Banque in Latest News - September 16th, 2015 9:27 am GMT
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- Asian shares followed Wall Street higher on Wednesday, albeit in thin volume, and short-term U.S. bond yields held near 4 1/2-year highs as investors braced for the possibility of the first interest rate hike in the United States in almost a decade. China shares rose 0.6 percent after sliding 6 percent early in the week on concerns about its slowing economy. Markets remain mixed on the likelihood of a rate increase by the Fed at its two-day meeting starting later in the day, and U.S. economic data published on Tuesday did little to either back, or douse, expectations of one. Emerging market currencies remained under pressure near multi-year lows on worries of capital outflows as U.S. yields rise and by concerns over China’s slowdown.
- U.S. shares rose 1 percent overnight, in part helped by data showing healthy growth in consumer spending, although retail sales for August were slightly below market expectations. Manufacturing remained soft, pressured by the impact of the strong dollar on exporters, slack economies oversees and lower oil prices. U.S. Treasuries yields jumped on Tuesday, with the policy-sensitive two-year yield rising about 8 basis points to 0.815 percent, its highest level since April 2011.
- U.S. oil prices extended gains in Asia on Wednesday on an unexpected stockpile draw and higher gasoline prices, while international crude markets remained weak on the back of low growth expectations. Australian bank Macquarie said that China’s economic outlook for the fourth quarter of the year was muted. The recent divergence in American and international markets has reduced the discount between U.S. and global crude benchmarks by almost two thirds during the past month to around $2.50 per barrel. U.S. crude futures rose after industry group the American Petroleum Institute (API) reported a 3.1 million-barrel crude drawdown last week, versus analyst expectations for a build. A surge in American gasoline prices was also supportive. Yet outside the United States, international crude markets were weaker largely because of high supplies from the Organization of the Petroleum Exporting Countries (OPEC) clashing with slowing demand, especially in Asia. Higher U.S. interest rates would likely attract cash from money traders, lifting the dollar. That would be seen as a bearish signal for oil as it makes fuel more expensive for importers who hold other currencies.
- Gold prices were steady to higher in Asia on Wednesday as investors stand pat ahead of a a possible move by the Federal Reserve this week to raise interest rates. U.S. Department of Labor’s Bureau of Labor Statistics will release its Consumer Price Index for the month of August on Wednesday morning. After ticking up by 0.1% in July, the headline reading is expected to remain flat on a monthly basis, amid lower energy prices. The Core CPI Index, which strips out food and energy prices, is expected to increase by 0.2% following modest gains a month earlier. Last month, Fed vice chair Stanley Fischer indicated that there is good reason to believe that inflation will move higher as the temporary forces such restraining it continue to “dissipate further.” Core PCE inflation, the Fed’s preferred gauge of price increases, has remained under its long-term targeted goal of 2% for every month over the last three years. Fischer highlighted a stronger dollar and dwindling crude prices as transitory or one-off effects that could recede over the next year.