Archives of “September 9, 2021” day

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Major European indices close the day with mixed results

  
Analysis, Global Indices

German DAX, up modestly. UK’s FTSE down 1%

The major European indices are closing the day with mixed results. The provisional closes are showing:

  • German DAX, up 0.1%
  • France’s CAC, up 0.2%
  • UK’s FTSE 100, -1.0%
  • Spain’s Ibex, -0.5%
  • Italy’s FTSE MIB, +0.1%
a snapshot of other markets as London/European traders look to exit shows:
  • Spot gold trading up to dollars and $0.28 or 0.13% at 1791.58
  • Spot silver is up $0.10 or 0.41% $24.04.
  • WTI crude oil futures are trading near unchanged at $69.35
  • Bitcoin is trading up $815 at $46,907.35
in the US stock market, the major indices are higher but off their highest levels:
  • Dow is up 33.18 points or 0.09% at 35063
  •  S&P index is up 2.18 points or 0.05% of 4516.20
  • NASDAQ is up 28 points or 0.18% at 15314.24

EIA US weekly oil inventories -1529K vs -4612K expected

  
  Analysis

Weekly US oil inventory data from the EIA

  • Gasoline -7215K vs -3390K expected
  • Distillates 3142K vs -2617K expected
  • Refinery utilization -9.4% vs -4.9% expected
  • Cushing +1918K
  • Production estimate 10.0mbps vs 11.5 mbpd prior
  • Implied demand -2.866 mbpd
The story here is that refineries ran slower than anticipated, which is going to continue to put a squeeze higher on gasoline prices.

This is a tough one to forecast and trade because of the ongoing effects of Hurricane Ida.
The API data from late yesterday showed:

  • Crude -2882K
  • Cushing +1794K
  • Gasoline -6414K
  • Distillates -3748K

Oil has had a wild ride today as it fell on the China SPR release but has completely recovered. At the bottom, I wrote “Counter-intuitively, I see this as bullish for oil because there’s been an overhang of Chinese inventories weighing on the market.”

Weekly US oil inventory data from the EIA

Little change among major currencies going into European trading

  
Analysis, Forex

Quieter tones prevail once again so far on the day

That said, risk sentiment is still rather soggy and that may fuel a bit more of a defensive tone as we look towards the start of European trading later.
FX
While FX is keeping in tighter ranges, US futures are down roughly 0.3% with 10-year Treasury yields keeping around 1.33% after the drop yesterday.
There was quite a bit of push and pull in the dollar overnight and that may yet keep the course as the market sorts itself out on the week. For today though, the ECB policy meeting will be a key risk event to watch for any moves.
EUR/USD is keeping around 1.1815-20 following the drop yesterday, with the 1.1800 level still holding though sellers are maintaining near-term control for now.
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