Tech and Bitcoin drop, Oil and Gas jump in mixed US session
26 July 2022US stocks were mixed in a quiet session, the Dow and S&P 500 eked out small gains whilst against a backdrop of a the Federal Reserve meeting on Wednesday, the Tech heavy Nasdaq saw a modest decline.
With a news quiet Monday behind us, there is a full calendar ahead with a slew of corporate earnings and of course the big one, the FOMC policy meeting on Wednesday which should see market action pickup from here on.
Not much happened in the FX markets with slight USD weakness in a very quiet session as FX traders seem to be holding fire with the shadow of the Fed looming.
News of more stalling on the Nordstream 1 pipeline saw Natural Gas tear higher, making 6 week highs and fast approaching the record highs set back in May.
This also helped drag oil up on the day, with Brent up almost 2% and WTI not far behind. We are also seeing the spread between Brent and WTI hitting new extremes as traders weigh up the differing supply fundamentals. Front month futures saw WTI crude trade at a discount of as much as $8.80 a barrel compared to Brent. It will be worth watching this spread for a possible pairs trading opportunity.
UKOil-F – USOil-F chart below
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