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PVM Midday Report 06 January 2015

Published Tuesday, January 6th, 2015

Headlines

  1. Final Dec Eurozone Services PMI revised down to 51.6 from flash estimate of 51.9
  2. Abu Dhabi’s NOC sets retroactive December Murban crude price at lowest since May 2009
  3. Russian exports of diesel from Primorsk set to surge 44% m/m in January
  4. Saudi Arabia ruler claims it will deal with low oil prices with “firm will”
  5. UK service sector growth eases in December – PMI

Fundamentals

Economy: European equities are extending yesterday’s losses as oil prices maintain their downward course and fresh evidence of economic weakness from the eurozone reinforces the region’s negative outlook – the Eurofirst 300 is down 0.1%. The final December services PMI reading for the currency-bloc was revised down to 51.6 from an earlier flash estimate of 51.9 and may signal a slowdown in activity across the zone during the final quarter of 2014. An equivalent PMI reading for the UK also missed expectations with service sector growth easing at the end of last year which subsequently sent the sterling to a 17-month low against the dollar. Deteriorating euro-area prospects and the ensuing uptick in risk aversion is bolstering demand perceived haven assets. Benchmark Treasury and Bund yields are off, the former slipping below 2%, whilst the yellow metal makes headway for the third straight day. The dollar index is profiting from euro and sterling weakness as it adds 0.1% to hover just below a nine-year 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.