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JASPER’S MARKET SQUAWK 21-11-2022

Started by PocketOption, Nov 23, 2022, 05:27 am

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JASPER'S MARKET SQUAWK 21-11-2022

WTI in Losing Streak


The oil markets continued to fall on Friday, recording a third consecutive day in the red as China reportedly requested Saudi Aramco to reduce oil shipments for December as Chinese demand for the commodity seems to dampen. The oil prices were partially affected by Europe's overstock and the new covid deaths in China.


WTI sank to $78.20/bbl and remains under pressure in the early hours of Monday at around $80/bbl.


Key factors for today:



  • WTI continues to slide as Chinese demand falls as country reports new c19 deaths

  • EUR/USD under pressure on Feds' hawkishness

  • Construction materials get a hit from falling Home Sales



Oil drops more than 5% but recovers above $80/bbl


Crude prices dropped more than 5% on Friday, with WTI slipping to a nearly 1-month low of $78.20/bbl but recovering above $80/bbl. Pressure built following reports that China would cut back on oil purchases and that European refineries were overstocked in the wake of strikes at French facilities. $82.50/bbl is short-term resistance below $85.60/bbl, whereas $76.50/bbl might send prices to 73.80/bbl.


Eurodollar down 0.45% on persistent Fed hawkishness


More Fed officials (Bostic and Collins) suggested that aggressive rate hiking isn’t over, with dollar yields rising and supporting the greenback into the weekend. On Friday, EUR/USD closed 0.45% lower at $1.0323, but come Monday, prices have already breached the round support of $1.03 and headed towards $1.02.


Lumber 3.13% lower after Home Sales fall for 9th month in raw


Existing home sales fell for a record nine consecutive months, but the drop wasn’t as bad as forecast at 4.43M. Average house prices rose as the market remained tight, with wide geographic disparity. DR Horton and Lennar were down on Friday, but lumber was the biggest loser, as it fell 3.13%. Copper and steel softened by 0.23% and 0.62%, respectively.


Shanghai losses 1% as lingering Covid affects China's output


Factories in Chongqing, the largest inland municipality in China, reportedly suspend production as authorities try to contain the recent covid outbreak. Additionally, many shops and restaurants in Beijing are reportedly shut after 2 deaths were reported, the first since the spring. The Shanghai index ended last Friday 1% lower, making most of the weekly losses.


Movers/shakers



  • Ross Stores +10% on better than anticipated earnings and raised outlook. Guided next quarter’s earnings above estimates, despite slowing same-store sales

  • Live Nation -8% on reports DOJ was investigating it concerning problems from Ticketmaster and Taylor Swift tour dates

  • Lincoln National +4% after Citi analyst reiterated buy rating but cut price target

  • Diamondback Energy -4% following multiple analyst actions, cutting price targets

  • Cisco +3% as analysts up ratings in light of better than anticipated earnings reported earlier in the week


On the docket



  • Chicago Fed National Activity Index

  • On earnings reports: British American Tobacco, DELL, Zoom, Gamesa, Manchester United, Big Yellow, Juventus, J.M. Smucker


The post JASPER’S MARKET SQUAWK 21-11-2022 appeared first on Key To Markets Blog.


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