Energy values fell yesterday as FED Chairman Ben Bernanke failed to announce another round of QE, instead he rolled out the “If market conditions warrant it, we will pursue further monetary easing”. This type of statement can turn the market on its head by making the market rally on poor data as poor data will in turn lead to another round of QE. Crude values were near the highs of the day before the speech but ended up falling into negative territory by the end of the session. Brent crude closed out the session at $99.93 down $0.71. WTI crude closed at $84.82 down $0.20 after reaching an intra-day high of $87.03. Gasoil closed at $858.75 down $6.75 while UK Nat Gas closed at £54.68 down £0.35.

The Euro is printing fresh day lows on Friday, as risk-off trade is posed to dominate the session.

Choppy session for the euro on Thursday has seen the cross trading in the 1.2560/70 range as it’s entered the Asian session, just to quickly lose ground to the 1.2510 region. Spanish bond yields are trading at 6.2% which is a worry while Italian 10 year bond yields are trading at 5.633%. At the moment, the cross is markedly down at 1.2513 or losing 0.44%, with the immediate support at 1.2480 followed by 1.2441 and then 1.2426. On the upside, a break above 1.2575 would bring 1.2626 and finally 1.2642.

Equities closed higher yesterday in Europe and the US but the US rally ran out of steam and only the DJIA closed positive at 12460.96 up 46.17. The S&P closed at 1314.99 down 0.14. In Europe the FTSE closed at 5447.79 up 63.68 while the DAX which has just opened is trading at 6085 down 54.0. Gold closed at 1573.90 down 14.10 while Silver is at 28.19 down 0.339. The S&P GSCI is trading at 592.05 down 1.0100.

In economic data today we have French Trade balance coming up first which is filled up with Italian Industrial Production. In the UK we have a GFK Inflation report and also PPI data. Over in the US we have only Trade
Balance data.

For Brent crude we draw first resistance at $99.50 followed by $100.00. On the downside we draw first support at $98.00 followed by $97.20.

For Gasoil we draw first resistance at $850.00 followed by $855.00. On the downside we draw first support at $840.00 followed by $835.00.

Jaime Miralles