Tuesday, February 4, 2014


Market Comment

US indices slumped on Monday pressured by shares in the Telecommunication Services, Consumer Durables & Apparel and Insurance sectors. The S&P 500 (1741.89) remains below its 20d moving average (1817.4 - negative slope) and its 50d moving average (1811.5 - negative slope).

European markets are expected to open on a negative note.

Foreign Exchange

US Dollar was mixed against most of its major counterparts on Monday. On the US economic data front, ISM Manufacturing dropped to 51.3 (56.0 expected) in January from 56.5 the previous month. Construction spending rose 0.1% MoM (flat expected) in December after a downwardly revised 0.8% gain the prior month.

The Euro was firm against its major counterparts. In Europe, euro zone PMI manufacturing was 54 in January in final estimation, vs 53.9 in prior one and 52.7 the month before. In Germany, PMI manufacturing advanced to 56.5 in January in final estimation vs 56.3 in prior one and 54.3 in December.


After the close of Wall Street, WTI Crude Future (MAR 14) was down $0.8 to $96.68. The contract was below its 20D MA (@ $98.29) and above its 50D MA (@ $96.59).

Gold was up $12.3 to $1256.9. The precious metal was above its 20D MA (@ $1248) and above its 50D MA (@ $1234).

Copper Future (MAR 14) on Comex was down 2c to 317.65c/lb. The contract was below its 20D MA (@ 330.62c) and below its 50D MA (@ 326.76c). The 14d RSI below 30 (27.53) indicates Copper Future (MAR 14) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 650 tons to 313875 tons.

UK Market News

BP announced results: "Underlying replacement cost profit for 4Q was $2.8B, compared with $3.9B for 4Q2012. Full-year underlying replacement cost profit was $13.4B for 2013, compared with $17.1B for 2012. Compared with the same periods in 2012, both 4Q and full year 2013 underlying results were affected by: the significant impact of BP's major divestment programme; weaker refining margins; and higher depreciation and exploration write-offs as the group brought new projects online and increased its investment in exploration. The impacts of these were partially offset by strong growth in underlying oil and gas production, particularly from key regions such as the North Sea, Angola and Gulf of Mexico. 4Q's result also benefitted from higher earnings from Rosneft than reported from TNK-BP in 4Q2012. (...) BP announced a dividend for 4Q of 9.5 cents per share, to be paid in March, 5.6% higher than the 4Q dividend last year. (...) The cumulative pre-tax charge for the Gulf of Mexico oil spill was $42.7B at the end of 2013, having increased by $0.2B in 4Q to reflect an increase in the provision for legal costs, and ongoing Gulf Coast Restoration Organisation costs."

European Markets

ECB: Publication of the MFI interest rate statistics (10am CET); Publication of the Consolidated Financial Statement of the Eurosystem (3pm CET)

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