The second part of the session in the markets brings a jump in volatility on many instruments. Natural gas-based contracts extend early declines to 5%, while Wall Street indices reverse much of the euphoric gains from the session's opening. The market is waiting with uncertainty for the CPI report, which will decide whether the US Federal Reserve will decide to cut interest rates quickly this year or whether its rhetoric will lean more toward slow cuts with a particular analysis of the path of inflation.
Since last week, the implied path of interest rates in the US has changed quite a bit. Namely, one rate cut of 25 basis points in six months has been completely erased, which also almost ruled out the chance of a 50-point cut in September. Source: Bloomberg Financial LP
Gas prices are subject to downward pressure today in large part due to the emerging Tropical Cyclone Six in the Gulf of Mexico, which is expected to hit areas of Louisiana late Wednesday afternoon. The cyclone's appearance anywhere in Louisiana would disrupt the loading of LNG tankers closer to the Cameron, Calcasieu Pass or Sabine Pass terminals. According to analysts at Energy Aspects, LNG feedstock gas will be a key pillar of structural gas demand this fall, as cooling demand in the US slows. “Sabine Pass and Cameron are the two largest export terminals in the U.S., and even a brief shutdown of operations at either terminal would increase inventories in an already congested storage situation in the south-central part of the country,” - The analysts added.
US100 is reducing early gains and is trading in close proximity to a key support zone set by the 200-day EMA (gold curve on the chart). Source: xStation
Natgas extends declines to over 5%. Source: xStation
Wheat tries to continue the uptrend despite improving US weather🔎What's next?
Morning Wrap: Ceasefire Fuels Wall Street Gains, but Political Uncertainty Remains
Daily Summary: Unilateral Ceasefire Sufficient for Wall Street
BREAKING: Crude Build Surprises Markets Amid Bullish Product Draws
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
