Baker Hughes US oil rig count 445 vs 433 prior

Weekly oil and gas drilling rigs from Baker Hughes

  • Nat gas 98 vs 99 prior
Here’s a chart from CIBC showing US drilled but uncompleted wells. They’ve been drawn down since the start of the pandemic as companies fake better efficiency and capital discipline. Rigs have been rising but they’re going to have to rise much more quickly to maintain US production. The EIA is forecasting around 700k bpd more production in 2022 and I just don’t see it, though WTI rising even further would certainly change that.
Baker hughes rig count

European major indices close higher for the day and the week

German DAX tests its 100/50 day moving averages

the major European indices are closing higher for the day and also closing higher for the week. The EuroStoxx 600 index rose by 2.6%. This was the best week since March.. UK’s FTSE 100 is trading at 7 month high. The German Dax test its 50 and 100 day moving averages.

The provisional closes are showing:
  • German DAX, +0.8%
  • France’s CAC, +0.6%
  • UK’s FTSE 100 +0.35%
  • Spain’s Ibex +0.8%
  • Italy’s FTSE MIB, +0.8%
For the trading week:
  • German DAX, +2.5%
  • France’s CAC, +2.57%
  • UK’s FTSE 100, +1.9%
  • Spain’s Ibex, +0.5%
  • Italy’s FTSE MIB, +1.6%
Looking at the daily chart of the German Dax, the high price reached 15598.58. That was just short of its 50 and 100 day moving averages at 15599 (see black and blue moving average lines in the chart below).
German DAX tests its 100/50 day moving averages_

Dollar a little more mixed in trading so far today

Yen weakness the dominant theme in the major currencies space

USD/JPY is keeping higher, up by over 0.4% to 114.16 currently near the highs for the day as the prevailing theme to start the session has been that of yen weakness.
10-year Treasury yields are up 2 bps to 1.54% so that is helping to underpin yen pairs and I detailed more on the technicals on that earlier here.
Going back to the dollar, it is tough to make much of trading sentiment at the moment with EUR/USD still looking sticky around 1.1600. GBP/USD is trading up by 0.3% to 1.3720 as cable buyers try for another push above 1.3700 after yesterday’s attempt fizzled off.
USD/CAD D1 15-10
But commodity currencies are the more interesting ones with USD/CAD hovering around 1.2340-50 at the moment, flirting with another daily drop (fourth consecutive one potentially) as oil prices are also looking perky with Brent clipping $85 earlier.
AUD/USD is flat on the day and still toying around with its 100-day moving average at 0.7411 but NZD/USD is at least keeping a slight advance of 0.2% to 0.7050 as buyers look to hold above its own 100-day moving average @ 0.7020.

China president Xi says will achieve ‘common prosperity’ by around the year 2050

The changing of times in China

This is now arguably the main agenda that is being pushed by Chinese authorities and while economic growth is still a major consideration, it is perhaps no longer the top priority as China looks to deal with more pertinent cultural and demographic issues.
Adam warned about this all the way back at the start of September here and China has arguably been prepping for that for a while now with the change to birth policy too, as they are hoping to avoid following in Japan’s footsteps on the demographic front.

MSCI highlight that firms with around US$7tln in market cap have some sort of exposure to cryptocurrencies

MSCI is a provider of equity, fixed income, hedge fund stock market indexes for across the globe.

Via Bloomberg:
  • At least 52 companies representing $7.1 trillion in market capitalization have some exposure to cryptocurrencies
  • range from all-in players like Coinbase Inc. to Bitcoin balance-sheet “hodlers” like Tesla Inc. and MicroStrategy Inc. to those dipping a toe into crypto-market services such as JPMorgan Chase & Co.
  • appears to be a lack of crypto expertise among members of corporate boards of directors

MSCI is a provider of equity, fixed income, hedge fund stock market indexes for across the globe.

US stocks roar ahead. S&P has its strongest day in seven months

Dow snapped the four day losing streak

The US stocks roared ahead with the Dow industrial average is snapping a four day losing streak:

  • S&P has its best day since
  • S&P and NASDAQ close higher for the second consecutive day
  • Dow industrial average snapped the four day losing streak
  • All S&P sectors closed higher
  • NASDAQ has its best day since May 20
  • Dow industrial average has its best day since July
  • S&P has its best day since March 5 (7 month high)
  • Gains were led by banks and better PPI data
  • initial jobless claims were also below 300K for the first time since the pandemic
The final numbers are showing:
  • Dow industrial average rose 534.73 points or 1.56% at 34,912.56
  • S&P index rose 74.46 points or 1.71% at 4438.25
  • NASDAQ index rose 251.8 points or 1.73% at 14823.44
Looking at the hourly chart of the NASDAQ index, it is closing just below its 200 hour moving average at 14832.61. In the new trading day moving above that level would be more bullish.
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