Technical & Fundamental Oil Reports Specialists

Follow us

China regains its balance

Published Monday, June 2nd, 2014

The upward momentum in global equities which saw another closing record on Wall St at the end of last week looks set to continue after upbeat Chinese economic data bolstered risk appetite. Manufacturing PMI readings from the world’s second-largest economy revealed that activity expanded at the fastest pace in five months in May. Although this may help to assuage fears of waning growth in China and support short-term investor sentiment, this week’s market direction will be dominated by the ECB monetary policy meeting and US jobs figures.

Stock market bubble expands further

Another good month saw global stock indices advance in May, with a particularly strong showing in Europe and the US. Both the DJIA and the S&P 500 indexes achieved record highs, settling 0.85% and 2.1% higher respectively. In Europe the FTSE-100 index settled 0.95% up, the German stock index gained 3.54% and the Spanish stock market added 3.24%. The MSCI Global Equity index jumped 1.8% during the month and is only 1.6% below its record high.

This seemingly unbreakable optimism was not backed up by equally encouraging financial data and developments. The Russian-Ukrainian crisis has been on every trader’s radar screen for the last 2-3 months. Regional economies are suffering but it is not believed to spread over to Europe, hence the surprisingly positive performance of European stock markets. This positive mood was maintained despite big gains for nationalist parties at the EU parliamentary elections.

to read the rest of the report, please click here 

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.