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Ukrainian ceasefire ends

Published Tuesday, July 1st, 2014

A strong quarter for global equity markets ended on a subdued note after risk appetite was undermined by the latest batch of mixed economic data. Eurozone inflation figures for June, which came in unchanged at 0.5%, highlighted the fragility of the bloc’s recovery and keeps pressure on the ECB to maintain its policy of monetary support. US home sales for May were more encouraging after they reached an eight-month high although a gauge of business activity in the US Midwest dipped by more than expected in June.  Nevertheless, the quarterly gains for the Dow and S&P stood at 2.2% and 4.7% respectively.

The onset of a new month brings with it the latest round of PMI surveys. Whilst Eurozone PMIs are due later today, the readings from Asia have pointed to a pick-up in manufacturing across the region as a whole.  Factory activity in both China and Japan accelerated in June with the former recording its first expansion in six-months and will help reinforce signs of stabilisation in the world’s second-largest economy. Despite the improving economic landscape, geopolitical tensions are still a source of concern as Ukraine’s President declares an end to a recently agreed ceasefire and signalled that operations against pro-Moscow rebels would be renewed.

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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.