US equity markets rebounded last night, driven by strong performances in the banking and technology sector.

The US Federal Reserve blessed a record level of post-crisis distributions after all 34 institutions passed the second part of annual stress test. The stress test results further strengthened investors’ confidence in the economic outlook and health of the financial system. Shareholders also expect record payouts from American banks, with almost $100 bn distribution from the six largest US banks – Bank of America, Goldman Sachs, Morgan Stanley, Citigroup JPMorgan Chase and Wells Fargo.

Favourable sentiment may spread across Asian equity markets today, with Nikkei, Simsci and Hang Seng future set to open higher.
WTI Crude oil price rebounded for a fifth day after reaching recent lows of $42.3 area. Technically, its 10-Day Simple Moving Average has flipped upwards, signalling a technical rebound. Momentum indicators MACD has formed ‘golden cross’, suggesting more upside from here. SuperTrend (10, 2), however, remains in bearish set-up thus investors need to wait for it to turn bullish before confirming a bearish reversal. Its immediate support and resistance levels can be found at around $42.9 and $44.9 respectively.

Sterling soared nearly 1% against the greenback and euro surged to a 52-week high against the dollar as market participants tried to price-in a stimulus exit following Draghi’s hawkish comment. Bank of England (BoE) governor Mark Carney said he was prepared to raise interest rates if UK business activity increased, which further strengthened GBP against other G10 currencies.

Technically, GBP/USD’s 10-Day Simple Moving Average and SuperTrend indicators were both trending upwards, suggesting bullish momentum will be dominant in the near term. Immediate support and resistance levels, as suggested by the Fibonacci Retracement, can be found at the 1.270 and 1.315 areas respectively.

Crude Oil West Texas – Cash

 

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