As usual, the latest monthly US jobs data will be reported on the first Friday of the month by the US Department of Labor. The data is poised to take on increased importance for market participants after the February figures saw a smaller than expected rise in average hourly earnings.
Europe was closed for Easter Monday and the Euro had the lowest volume since the day after Christmas. After opening higher Sunday night and trading more than a halfpenny in the green, the Euro pared all gains to make a new low before settling near the middle of the session’s range.
What a turn around yesterday! We have hammered home the exacerbated feel of this sell-off all week with the blatant negativity being a true upside catalyst. The S&P is now 100 points from yesterday’s session low and traders did not need to pick a bottom, there were many opportunities to get long as the day unfolded.
While markets get whipsawed on trade war fears, back in the real economy things are smoking. Not only did we see smoking demand for oil, the preponderance of economic data is signaling even stronger U.S. and global energy demand.
Oil prices managed to recover from sharp losses yesterday, but still remain in the red for the week. At the start of today’s session, prices were a little weaker as speculators made a more sober assessment of yesterday’s oil report. At first sight, the EIA’s weekly crude stocks data appeared bullish.