Written on: August 5, 2024
Monday, August 5, 2024
Energy futures continue their slide Monday morning amid sell-off in equities, despite further weakness in US dollar index. Market traders are looking ahead to the final US S&P Global Composite PMI and to the ISM Services Index for further direction.
In European news, the final July S&P Global Composite PMI for the Eurozone and German both saw surprise upward revisions, to 50.2 and 49.1 respectively. On the other hand, the index for France was a miss by coming in at 49.1, below the 49.5 flash estimate. The CIPS/S&P Global UK Composite PMI saw an upward revision from the 52.7 flash estimate, to 52.8. In unsupportive news, the Producer Price Index for the Eurozone showed prices rose 0.5% in June, above the 0.4% expectation.
Stock markets continued their sell-off from Friday. The US stock market index futures are seeing losses between 2.8% (Dow futures) and 5.0% (Nasdaq), as of this writing. In the supportive column, the US dollar index was down 0.8% this morning. As of this writing, the CAC 40 was down 2.4%, the FTSE 100 had lost 2.7%, and the DAX had dropped 2.9% lower.
Energy futures sold off on Friday with losses of over 3% amid a sell-off in equities, despite a drop in the US dollar. Brent crude fell $2.71 to $76.81 a barrel, WTI crude lost $2.79 to close at $73.52 a barrel, gasoline futures dropped 8.04 cents lower to $2.3176 per gallon, heating oil tumbled 8.79 cents lower to settle at $2.3185 per gallon and natural gas futures edged down 10 points to settle at $1.967 per MMBTU.
Debby has strengthened into a hurricane over the weekend and is currently located near the Florida-Georgia border, seen producing heavy rainfall.
