Tuesday, February 18, 2014


Market Comment

US indices rose last Friday helped by shares in the Household & Personal Products, Energy and Media sectors. The S&P 500 (1838.63) remains above its 20d moving average (1799.9 - negative slope) and its 50d moving average (1811.3 - flat slope). Market was closed on Monday for Presidents' Day.

European markets are expected to start on a positive note.

Foreign Exchange

US Dollar was mixed against most of its major counterparts on Monday. On the US economic data front, no major data were released as US markets were closed for Presidents' day.

The British Pound fell against its major counterparts. In Europe, according to Rightmove, UK house prices are up by 3.3% in February after a 1% increase in January.


After the close of Wall Street, WTI Crude Future (MAR 14) was up $0.6 to $100.92. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35).

Gold was up $10.3 to $1329. The precious metal was above its 20D MA (@ $1269) and above its 50D MA (@ $1244). The 14d RSI above 70 (75.32) indicates gold was overbought.

Copper Future (MAR 14) on Comex was up 1.6c to 328.05c/lb. The contract was below its 20D MA (@ 330.62c) and above its 50D MA (@ 326.76c). In Europe, the London Metal Exchange reported its copper inventories decreased 3100 tons to 296025 tons.

UK Market News

BHP Billiton said 1H net income surged 82.9% YoY to $8.1B on revenue of $33.9B, up 5.9%, pointing out: "A substantial improvement in productivity and additional volume from our low risk, largely brownfield investment program contributed to a significant increase in profitability in the December 2013 half year. Underlying EBIT increased by 15% to $12.4B and Underlying attributable profit increased by 31% to $7.8B. (...) A 65% increase in net operating cash flow and a 25% reduction in cash outflows from investing activities led to a $7.8B increase in free cash flow. (...) (iron ore) Underlying EBIT for the December 2013 half year increased by $1.7B to $6.5B. (...) (copper) decreased by $200M to $2.9B. (...) (petroleum) decreased by $534M to $2.6B. (...) (coal) increased by $431M to $510M. (...) Our interim dividend of 59 US cents per share was unchanged from last year's final dividend." On the outlook the Co commented: "Chinese steel production growth rates are expected to decelerate to levels considerably below GDP growth in the short term as the economy matures following a period of steel-intensive, infrastructure-led growth. In this context, a more balanced iron ore market is anticipated with substantial new supply from the high quality, low cost basins of Western Australia and Brazil expected to exceed demand growth. (...) with global growth rates expected to rise, demand for steel making raw materials from markets outside of China should also rise. This will predominantly benefit metallurgical coal demand given the reliance of these markets on higher quality, imported product. (...) Growth in copper production has exerted some downward pricing pressure, with the supply of concentrate exceeding smelter capacity."

European Markets

ECB: Publication of the Consolidated Financial Statement of the Eurosystem (3pm CET); Publication of the Euro area monthly balance of payments (10am CET); Participation of Mr. Praet in panel "Fixing Finance" at Lisbon Summit organised by The Economist in Lisbon, Portugal.(11:30am CET)

Conference: 6th Annual Disposable Solutions for Biomanufacturing

MTU Aero Engines FY results expected

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