Crude Oil Slump Maybe Making Global Investors Tentative

Crude Oil’s slump may be causing tentative sentiment on the global equity markets. However, the NASDAQ was able to gain on Wednesday as investors may have been buying a market they felt was oversold last week. Weekly Unemployment Claims will come from the States today.

Investors Pursue NASDAQ

Wall Street saw the Dow Jones Industrials deliver slight losses on Wednesday, but the NASDAQ did manage a relatively strong day, and investors may be buying tech stocks which they felt were oversold in the previous week. The Dow Jones Industrials stands above the 21,400 level and remains within striking distance of its record highs. Existing Home Sales numbers from the States yesterday produced better results, and today weekly Unemployment Claims will be released. Housing Sector data will continue tomorrow from the U.S when New Home Sales figures will be issued. A factor in the tentative trading in U.S markets and global exchanges may be the weakened Crude Oil values, which could be spooking banks and financial institutions that hold large amounts of corporate debt from the oil sector.

Manufacturing PMI from Japan on Friday

The Shanghai Shenzhen and Hang Seng composites have led the Asian equity markets this morning with gains. The Nikkei and Topix Indexes have been tentative early, the past two days have seen losses on the Japanese exchanges, but a bit more buying has been seen early today. The Yen has been range trading against the U.S Dollar and the 111.00 level remains important. A Flash Manufacturing Purchasing Managers Index reading will come from Japan early on Friday.

Lack of Clarity Hurting Pound

European equities continued to produce marginal losses on Wednesday. Prime Minister Theresa May’s speech before Parliament yesterday was short on specifics and her hold on leadership is clearly in question. The lack of clarity in U.K politics has hurt the Pound which has a 1.26 support level against the U.S Dollar as of today’s trading. The Footsie has languished and is in negative territory over the past month. An Industrial Orders Expectations report will come from Britain later today. The European Central Bank will publish it Economic Bulletin this morning and its data may spur on the Euro which has range traded nearly the entire week.         

Support Levels Fail Again

Crude Oil fell below 43.00 U.S Dollars a barrel on Wednesday. The decline in the commodity has gotten the attention of global investors. Yesterday’s supply numbers for Crude Oil proved negative, but this did not stop headwinds from pushing the value of the energy lower. Speculative trading within Crude Oil will likely continue the next two days.       

Yaron Mazor is a senior analyst at SuperTraderTV.

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