Nov 13


  • BY: Donal Kelly
  • November, 13th, 2015 20:54 +00:00

Good evening,

US indices are in negative territory, with the S&P500 down 23.16 points at 2,022.81 (-1.13%) and Nasdaq Composite is losing 72.1 points at 4,932.98 (-1.44%). Mixed macro data in United States, with Mich Sentiment above the consensus but Retail Sales did not match the expectations. Momentum in global equities lost its force and profit taking may continue in the short term.

In the FX market EurUsd is losing 68 pips at 1.0744 (-0.63%) and UsdJpy is up 11 pips at 122.69 (+0.09%). GbpUsd is unchanged at 1.5228. UsdChf will close in positive territory for the 4th consecutive week and the rate, now trading at 1.0072 (+0.75%) is only 150 pips distant from the level it was trading before the Swiss National Bank decided to cut the floor with the Euro.

In the Crude Oil market sellers are in control and the commodity will close in negative territory for the second consecutive week. Crude Oil is trading at 40.77 $/barrel (-2.35%) and may test the next week area 37 if leveraged traders will go on margin call. Volatility on the commodity increased but it is below its summer highs. Standard deviation now on 20 session is at 1.5 while on August it was at 2.1. The probability to see a panic selling wave should not be underestimated.

Gold and Silver are calm after a distribution phase that brought them to test their multiyear low area. Silver is down 72% from its top reached on April 2011 and is most depressed than the shiny metal. Gold is down 43% from its record high made on September 2011. The quantitative easing of major central banks could not stop the multiyear bearish market of precious metals, but given their oversold condition, the downtrend may be close to a reversal. Commodities are not equities, and even in a expectation driven market, their value cannot reach zero.

(20:50 GMT)