Wall Street steady on Saudi optimism

US indices recovered early losses to finish marginally higher yesterday. Saudi Arabia said it had recouped about 50% of lost production and expects to be back to pre-attack levels by the end of the month. That’s an earlier time-frame than many had feared. The Federal Reserve is expected to cut rates at today’s FOMC meeting.

US30USD Daily Chart

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The US30 index bounced off one-week lows to close slightly higher

The 55-day moving average has edged up to 26,606, with prices trading above it since September 5

The Federal Reserve is expected to trim its benchmark rate by 25 bps today. Market pricing is assigning a more than 80% probability of a cut, which is down from above 90% last week following the spike higher in oil prices on Monday.

DE30EUR Daily Chart

The Germany30 index fell for a second day yesterday, dropping to a one-week low before a mild rebound

The 100-day moving average is at 12,114 and has supported prices since September 6. The 55-day moving average is just below at 12,083

Euro-zone consumer prices are seen rising 0.2% m/m in August following a 0.5% decline in July. ECB’s De Guindos is due to speak today.

WTICOUSD Daily Chart

Crude oil prices gave back almost half of Monday’s gains yesterday after Saudi Arabia announced it expected to be fully back online by end-September

The 100-day moving average is at $56.95 today and could be the first technical support point

EIA crude oil inventory data as at September 13 are due to be published today. Expectations are for a drawdown of 2.9 million barrels after a 6.9 million barrels decrease the previous week.

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