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U.S. equity index futures slightly red: S&P 500 off ~0.3%
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U.S. initial jobless claims 242k vs 240k est
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U.S. Q1 labor costs > est; productivity < est
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U.S. Mar international trade -$64.2B vs -$63.3B est
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Euro STOXX 600 index down ~0.6%; ECB hikes 25bps
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Dollar, crude rise; gold ~flat; bitcoin up ~2%
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U.S. 10-Year Treasury yield little changed ~3.4%
Welcome to the home for real-time coverage of markets brought to
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CRUDE OIL FUTURES: HAMMERING OUT A FLOOR? (0900 EDT/1300
GMT)
Rocked by recession fears, NYMEX crude oil futures have been on the back foot. That said, the futures are
attempting to make a stand on Thursday as they test key chart
support.
Despite U.S. crude oil inventories falling for a third week
in a row and the U.S. Strategic Petroleum Reserve hitting its
lowest levels since October 1983, a surprise rise in gasoline
stocks on weakened demand, coupled with the Fed's 10th-straight
interest rate hike on Wednesday, may have dented sentiment
enough to cause a swoon in Thursday's trading.
The futures slid to $63.64, or their lowest level since
early December 2021:
With this, futures once again tested support at the 200-week
moving average (WMA), which has proven to be a long-term magnet.
It now resides around $66.85.
Additionally, the futures flirted with the 38.2% Fibonacci
retracement of the April 2020-March 2022 advance, at $65.25, the
March 2023 low at $64.12, and a weekly Gann Line that now
provide supports around $63.50.
The Dec. 2, 2021 low was at $62.43, and the Aug. 23, 2021
trough was at $61.74. Thus, there is a wealth of support in the
mid-to-low $60s that may serve to continue to stem weakness.
The futures have subsequently snapped back to the $69 area,
and are forming a daily hammer candle. If this pattern holds
through the close, it may signal a bottom and trend reversal.
As stands, in order to add confidence in a turn, traders
will want to see Friday's close above $72.31 to form a hammer on
a weekly basis.
In any event, if the daily pattern evaporates and support
gives way, the 50% retracement of the April 2020-March 2022
advance is at $45.09, so additional downside could be severe.
Meanwhile, the S&P 500 energy sector , which ended at
607.37 on Wednesday, is once again teetering as it breaks its
12-month moving average, which now resides around 632.70.
(Terence Gabriel)
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
