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PVM Midday Report 11 June 2014

Published Wednesday, June 11th, 2014

Headlines

  1. Iraq maintains end-of-year oil output target of 4mbpd despite situation in Mosul
  2. UK unemployment rate slips to five-year low of 6.6% in the three months to April
  3. US mortgage applications index rebounds by 10.3% in the week ended June 6
  4. Sunni militants advance into northern Iraqi oil refinery town of Baiji
  5. Libya reveals oil output target for 2014 of up to 0.9mbpd if production is restored

Fundamentals

Economy: The risk-on sentiment which propelled global equities to multi-year highs looks to be waning after the World Bank cut its global growth forecast for this year – the Eurofirst 300 is dipping 0.5%. Despite growing evidence of an improving economic outlook in the US and China, the World Bank reduced its 2014 global growth forecast to 2.8% from 3.2% previously. Nevertheless, subdued levels of risk appetite are failing to support perceived safe havens as yields on benchmark Treasuries and Bunds add 2 and 3 basis points respectively. Gold is steady at $1,263/oz whilst the dollar index continues to gain from rising Treasury yields, advancing 0.1% as it heads towards a four-month high.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.