Technical & Fundamental Oil Reports Specialists

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Euro saved, hearts and minds lost

Published Tuesday, June 3rd, 2014

The start of a new month signalled a fresh round of global PMI readings which on the whole supported investor sentiment. After a disappointing start to this year, Chinese economic growth prospects were enhanced after manufacturing and services’ surveys came in at multi-month highs. The strong set of economic data from the world’s second-largest economy suggests that the government’s recent round of mini-stimulus is starting to take effect.

Equivalent data for the Eurozone was a little more mixed with the manufacturing PMI for the region as a whole pointing to a modest slowdown in the sector’s recovery. Strong performances from Spain and Italy were outweighed by another poor-showing from the common currency area’s problem child, France. Nevertheless, the mood remained firmly risk-on with markets expecting action from the ECB this coming Thursday. Positive factory and construction data from the US rounded off a good day for equity bulls with the Dow and S&P500 closing yet again at record highs.

A slow day in the oil market saw the five main contracts drifting lower with little to report. What is worth mentioning was negative if anything therefore it is understandable that WTI lost 24 cents/bbl (102.47) and Brent closed 58 cents/bbl lower (108.83). Heating Oil finished the day 109 points down and RBOB kicked off June by settling 220 points below Friday’s close.

to read the rest of the report, please click here 

Posted by David Hufton