Daily Review – Thursday 27-Oct-2016

Daily Review – Thursday 27-Oct-2016

US – EIA Crude Oil Inventories

Contrary to the API number on Tuesday, the EIA reported a drawdown of 0.6M barrels.

WTI spiked 120 pips when the news hit and we even saw the $50 price being tested for a few minutes. However, after 2.5 hours of trading the price stabilized at normal levels again, currently trading at the $49.15 range.

 

US – New Home Sales

New single family homes came in at an annual rate of 593K in September, 3.1% higher than August which was originally reported to be 609K, but later revised to 575K.

Compared with a year ago September was up by 29.8%.

 

US – Goods Trade Balance

The US preliminary trade balance for September recorded a deficit of $56.1bn from $59.2bn the previous month, a decline of 5.2%.

The deficit was lower than the expected figure of $60.6bn and was also lower than the September 2015 estimate of $60.7bn.

 

US – Markit Flash Service PMI

The American service industry is showing robust expansion with the index showing a score of 54.8 for October, up from 52.3 in September.

 

UK – BBA Mortgage Approvals

Mortgage approvals showed a slight increase in October at 38.3K compared to a revised 37.2K in September.

The trend for 2016 has been on a downward trajectory as September approvals are down 15% lower than in 2015. Annualized 2016 has been 3% lower than the first 9 months in 2015.

 

EU – German Import Prices M/M

The German import prices rose by 0.1% in September after seeing a 0.2% decrease in August.

Compared with a year ago, September prices decreased by 1.8%.

 

EU – GFK German Consumer Climate

The November reading of the German consumer confidence index fell below the 10 point mark, at 9.7 points.

This weakening of the index is not caused by the domestic trend, rather the increasingly difficult external trade environment.

 

EU – Italian Retail Sales M/M

The Italian retail sales decreased by 0.1% in August compared to July.

Food products were down 0.8% while non-food was up 0.3%.

 

Japan – Services Producer Price Index (SPPI) Y/Y

Japanese Services Producer Price Index gained 0.3% compared to last year, slightly above the estimate of 0.2%.

Excluding international transportation the index rose 0.4%.

 

Australia – Consumer Price Index (CPI) Q/Q

Australian consumer prices rose 0.7% in Q3, following a 0.4% rise in Q2.

Fruit, vegetables, electricity and tobacco were the main reasons for the increased inflation.

 

Upcoming Data Releases

US unemployment claims will be released on Thursday, as well as the core durable goods orders.

Furthermore, UK will release its preliminary quarterly GDP figures so let’s see how much their economy has been hit post Brexit.

Daily Review - Friday 28-Oct-2016 Daily Review - Wednesday 26-Oct-2016