Dec 07


  • BY:
  • December, 07th, 2015 21:54 +00:00

Good evening,

US indices lost ground after the opening and then traded in a range, with the S&P500 down 14.62 points at 2,077.07 (-0.70%) and the Nasdaq Composite closed at 5,101.81 (-0.79%).

Crude Oil lost 2.32$, trading now at 37.66 $/barrel (-5.78%). The selloff, near to panic selling on the commodity, was triggered by both fundamental and technical factors: OPEC did not reduce the output and geopolitical tensions are not making expensive buying options on the positive side. The expected supply is still above the expected demand, and the financial  stress of companies that adopt fracking that could reduce the output is irrilevant compared the potential slowdown of the global economy. Technically Crude Oil went below today its 2015 low and then if it should close this week below the multiyear low reached on 2009 the commodity target price could be 20 $/barrel on the medium term, a price reached back in 2002.

US dollar is gaining ground against all the major currencies, with EurUsd down 41 pips at 1.0834 (-0.38%) and UsdJpy trading at 123.36 (+0.22%), up 27 pips. NzdUsd is the worst performer among major FX pairs, down 100 pips at 0.6643 (-1.48%).  Gold is down 12.4 $ at 1,071.7 $/oz (-1.14%).

At 23:50 GMT important economic data for Japanese Yen and Nikkei traders, with Japanese GDP and Trade Balance as well, then the Asian session will continue with Chinese Trade Balance at 02:00 GMT.

(21:40 GMT)