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Political instability in Eastern Europe persists

Published Monday, June 30th, 2014

Last week was characterised by disappointing economic data and helped US stock markets retreat from their all-time highs. The most significant revelation was undoubtedly the huge downward revision of US 1Q GDP growth to -2.9% which the exceptionally cold weather was blamed for. There have been hopes growth will return for the rest of the year. Whilst this will certainly be the case it must be pointed out that weak US consumer spending data for May forced the Commerce Department to cut their 2Q economic growth forecast to 2.2% from a previous estimate of 4%.

Eurozone manufacturing sector expansion was not as positive as hoped for in May. Coupled with falling German business sentiment it provided the perfect recipe for stock market longs to switch at least part of the risk off and take profit. The MSCI Global Equity Index closed 0.31% down on the week and the DJIA lost 0.56% of its value over the period. In Europe the FTSE-100 index settled 0.99% lower whilst the Greek stock market was hit hardest with a weekly loss of 7.35%.

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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.