PVM Midday Report 13 June 2016
Headlines
OPEC hints at tighter oil balance in 2H 2016; output down 100,000 bpd in May
Chinese implied oil demand falls by 380,000 bpd in May y/y to 10.24 mbpd
Iran’s biggest oil…
The new quarter started on a positive note after the release of manufacturing data confirmed that the global economic recovery is on track. Eurozone factory output remained in expansion territory with robust performances from both France and Spain as German unemployment fell to a fresh low. Underwhelming industrial output figures from China were shrugged off as they buoyed hopes of monetary easing measures from the country’s central bank.
Momentum shifted firmly to the upside once figures revealed that US factory activity accelerated during March in a sign that the economy has recovered from the weather-related disruptions early in the year. The second consecutive rise in the ISM index to 53.7 helped support sentiment which eventually saw the S&P 500 gain 0.7% to finish at a record high. The feel good factor was extended to equity indices around the world as risk appetite returned to the fore.
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