Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Retail Sales, Jobless Claims, Gas Crunch, IPO Season - What's Moving Markets

EconomySep 16, 2021 19:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- The focus stays on economic data on Thursday, with U.S. retail sales and jobless claims due. European car sales crater due to shortages of chips and other components, while space stocks get a lift from SpaceX's first all-civilian flight and the post-Labor Day surge in IPOs goes its merry way. Europe's energy price crunch drives gas prices in the U.S. and Asia higher, while oil prices take a breather as supply problems resolve themselves. Here's what you need to know in financial markets on Thursday, 16th September.

1. Retail sales and jobless claims

The focus stays on the U.S. economy today with retail sales data for August due at 8:30 AM ET, along with weekly jobless claims numbers.

Analysts expect retail sales to have fallen 0.8% in the month, as consumers re-direct disposable income back toward services and away from goods.  Monthly retail sales numbers have been erratic through the spring and summer, although they remained up 15.8% on the year in July, an illustration of how strong consumer spending drove a rapid recovery in the economy earlier this year.

Initial jobless claims are expected to have ticked up to 330,000 last week from a post-pandemic low of 310,000. The Philadelphia Fed’s monthly business survey is also due.

2. Shortages hit European car sales

One sector where sales are definitely cooling off is in autos, as inventory shortages and price spikes put customers off from purchases.

That much had already been hinted at in the ‘used cars’ component of U.S. inflation data earlier this week and was rammed home overnight by figures showing a sharp drop in car registrations in Europe last month. Sales were down by 14% on the year in Germany, by 35% in France, and by 19% and 30% respectively in the U.K. and Italy.

The same phenomenon was also evident in much weaker-than-expected export data from Japan overnight. Exports were up only 26% on the year, rather than the 34% expected.

3. Stocks set to open a tad lower

U.S. stock markets are expected to edge lower later, pending the day’s most important economic data.

By 6:15 AM ET, Dow Jones futures were down 30 points, or 0.1%. S&P 500 futures were down 0.1% and Nasdaq 100 futures were down 0.2%.

Space-themed stocks appear likely to get some attention after the launch of SpaceX’s first all-civilian flight, while Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) will also be in the spotlight after trying to support their campaign for booster shots with admissions that the initial protection afforded by their Covid-19 vaccines wanes over time.

Also in focus will be coffee chain Dutch Bros (NYSE:BROS) and tech consultancy Thoughtworks. Dutch Bros rose over 50% on its debut on Wednesday, while Thoughtworks rose 40% even after being priced at the top of its range. Meanwhile, Tesla (NASDAQ:TSLA) is running into some selling pressure from Cathie Wood's suite of ARK investment funds.

4. European gas crunch forces industry shutdowns, drive U.S., Asian prices higher

The crunch in European energy prices continued, with high natural gas prices in particular forcing the first shutdowns of industrial customers in the U.K. CF Industries (NYSE:CF) said its two fertilizer plants in England would close until further notice.

Day-ahead natural gas futures in the U.K. rose to 177 pence a therm, the highest on record and nearly 70% above the previous record high. Bloomberg reported that European demand for liquefied natural gas had prompted big utilities in India and Japan to pay close to record prices for cargoes due in November and December. U.S. Henry Hub futures, meanwhile, eased off 2% but remained close to seven-year highs at $5.35 per mm Btu.

Shares in European energy companies continued to struggle, amid growing signs that governments prepare to tax away their windfall profits. Spain’s Iberdrola (OTC:IBDRY) and Endesa are now down 12% and 10% for the week, while Italy’s Enel (MI:ENEI) is down 6.8%.

5. Oil takes a breather as supply concerns ease

Crude oil prices are also easing after hitting their highest level since early August on Wednesday in response to confirmation of another sharp draw on U.S. stockpiles.

By 6:30 AM ET, U.S. crude futures were down 0.2% at $72.50 a barrel while Brent futures were down 0.1% at $75.40 a barrel.

Concerns about supply have waned as Libya’s biggest export terminal resumed operations after a dispute with striking workers and security guards was resolved. There was also a light at the end of the tunnel in the Gulf of Mexico, where Royal Dutch Shell (LON:RDSa) said it would be ready to restart its Perdido platform on Monday, provided its downstream assets were ready to take crude deliveries. Perdido and other Shell platforms are currently shut in due to high winds from Hurricane Nicholas.

Retail Sales, Jobless Claims, Gas Crunch, IPO Season - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email