PVM Midday Report 13 June 2016
Headlines
OPEC hints at tighter oil balance in 2H 2016; output down 100,000 bpd in May
Chinese implied oil demand falls by 380,000 bpd in May y/y to 10.24 mbpd
Iran’s biggest oil…
Headlines
- Kiev announces cease-fire deal agreed with Russia
- Eurozone business activity growth rate slips to eight-month low in August
- Britain’s North Sea Buzzard oilfield remains offline
- Euro-area retail sales decline 0.4% m/m in July
- US mortgage applications index rises 0.2% in week to August 29
Fundamentals
Economy: European stocks are surging higher as reports of an agreement between Russia and Ukraine on a permanent cease-fire bolsters levels of risk appetite – the Eurofirst 300 is gaining 0.9%. Russian assets are also rallying on the prospect of peace in eastern Ukraine with the rouble climbing 1.5% against the dollar and Moscow’s Micex adding 2.6%. The slew of feeble eurozone economic data showed no sign of abating after a composite PMI reading revealed that business activity across the region grew at its slowest rate this year in August. Moreover, the ECB will have to contend with disappointing retail sales figures which recorded a sharp m/m slowdown in July when contemplating the option of further monetary support at tomorrow’s policy meeting. With investor sentiment now largely immune to the seemingly unending run of weak eurozone data, the broader mood is mostly upbeat which in turn is sending perceived havens lower.
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