US MARKET WRAP 11/12/17:  Forties pipeline closure sends Brent to 2-year highs

EQUITIES: S&P 500 +0.3% at 2660, NASDAQ100 + 0.78% at 6394 and Dow Jones +0.23% at 24386

Top 3 performing sectors:  Telecom + 1.10%, Energy +0.65% and Technology +0.57%

Bottom 3 performing sectors: Financials -0.31%, Industrials -0.29% and Consumer Staples -0.1%

Stocks traded positive on Monday thanks to Disney (DIS) as they led the Dow Jones following reports a deal with 21st Century Fox (FOXA) may be coming as early as this week, with the Murdoch’s said to be getting a small stake in Disney through the deal.

Energy was among the leading sectors after reports that the Forties North Sea pipeline was shut down, resulting in an increase of WTI & Brent oil prices.

The NASDAQ-100 outperformed other major indices and was being led by Biomarin Pharmaceuticals (BMRN) as they released positive results for its gene therapy efforts.  

 

TREASURIES: 10-YEAR T-NOTE FUTURE SETTLES FLAT AT 124.08+

Earlier trade showed some volatility after a reported terrorist attack in New York caused a bid in treasuries, however shortly after the gains were shrugged off as police caught the suspect who only injured himself.

Treasuries traded lower after the weak 10 year auction with a tail of 0.05bps, a weaker B/C than the 6 auction average, and with dealers taking higher than the average and much higher than the previous. However, managed to pare back the losses throughout the rest of Monday’s Trade.

 

FOREX: DXY finishes the day +0.01% on the day

The dollar index traded relatively flat on the day, outperforming against sterling amid continuing Brexit uncertainty followed from weekend reports that pro EU tory rebels believe they have a chance of securing a ‘meaningful vote’ on the final deal before ministers formally initiate Brexit with leading party whips said to be worried they won’t be able to prevent this.

On the other end, the kiwi outperformed against the greenback following the RBNZ naming the New Zealand Superannuation Fund CEO Adrian Orr as the next RBNZ Governor.

Emerging FX traded mixed on Monday with the Mexican peso underperforming, as well as the Brazilian Real following reports from Brazil’s Planning Minister Oliveira saying it would be hard to approve pension reform plan in election year, and that it must be approved next year if not this year. Whereas the Turkish Lira traded relatively flat and the South African Rand outperformed.

 

CRUDE: WTI crude futures settle at USD 57.99/bbl, up USD 0.65, Brent crude futures settle at USD 64.69/bbl, up USD 1.29

Brent crude oil hit two-year highs at USD 64.85/bbl, (its highest level since June 24, 2015) as the Forties Pipeline System, carrying more than 40% of the UK North Sea’s oil and gas, is to be shut down for "weeks" rather than days due to repair a crack in the pipe. This also helped WTI catch a bid although the spread between the two benchmarks widened on fears of a supply shortage from the North Sea.

11 Dec 2017 - 21:11- EnergyGeopolitical- Source: RANsquawk

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