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Russia manoeuvring spooks both the oil and stock markets

Published Wednesday, August 6th, 2014

Escalating geopolitical tensions sparked a sell-off on global equity markets as improving prospects for ending the conflict in Gaza were overshadowed by fresh concerns over the Ukrainian crisis. Reports that Russia was amassing troops near the Ukraine boarder and calls from Putin for his government to prepare retaliatory measures against the western sanctions compounded the already meek levels of risk appetite. The upshot saw the Dow off 0.8% and the S&P losing 1% whilst gold ticked higher.

The mood failed to receive any support from encouraging macroeconomic data on both sides of the pond. Eurozone business activity expanded at its fastest rate in three years in June and retail sales across the region during the same period posted a better-than-expected 0.4% rise from the previous month. Optimism over the US economy was bolstered by a solid rise in June factory orders and its ISM service sector survey hit a more than eight-year high in July.

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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.