Energy futures were mixed yesterday with Brent closing pretty much flat while WTI rose as conditions in the minds of traders have improved the chances of another round of QE. It seems like poor economic data will now cause the market to rally as it increases the chances of another round of QE. Poor jobs data helped this train of thought as did decreasing business purchases. OPEC agreed a 30 million barrel production ceiling and put in a verbal floor of $90 bbl. Elsewhere G20 officials are prepared to stabilize the markets next week should the outcome of the Greek elections result in a Greek Euro exit causing equities to surge higher. Turning to last night’s closing levels, Brent crude closed out the session at $97.03 down $0.10. WTI crude closed at $83.91 up $1.29. Gasoil closed at $844.75 down $2.75 while UK Nat Gas closed at £54.05 down £0.05.
The Euro has been climbing since Monday really and has moved from the 1.2450 area to where it currently trades at 1.2650. Rumors over further FED easing have helped boost the price ahead of the Greek elections at the weekend. Currently the cross is trading at 1.2633 and we see next resistance at 1.2672 and again at 1.2690. On the downside we draw first support at 1.2542 and again at 1.2442.
Equities were mixed to lower in Europe with the FTSE closing at 5467.05 down 16.76 while the DAX has just opened and it is higher by 26.0 at 6164.00. In the US the DJIA reversed early losses to close higher at 12651.91 up 155.53 while the S&P closed at 1329.10 up 14.22. The VIX fell 10.67% to close at 21.68 while Gold is trading at 1625.30 and Silver at 28.61.
In economic data today we have UK Trade Balance data to start us off which is followed up with Euro-Zone Employment data. Over in the US we have Long Term TIC Flows and that is followed up with Industrial Production and finally Michigan Confidence.
For Brent crude we draw first resistance at $98.10 followed by $99.00. On the downside we draw first support at $97.20 followed by $96.50.
For Gasoil we draw first resistance at $855.00 followed by $860.00. On the downside we draw first support at $848.00 followed by $844.00.
Jaime Miralles