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US oil stocks fall and so do prices

Published Thursday, September 24th, 2015

Logic states that markets ought to have become used to poor Chinese economic data by now. Well logic does not always prevail and this was seen yet again following fresh evidence of a slowdown in the world’s second-biggest economy. Asian bourses slumped on news that a flash reading of China’s factory activity eased to its lowest level since the onset of the 2008 financial crisis. The downbeat mood was tracked by European stock indices which recouped early losses to end the day a touch firmer in what was a choppy session as investors absorbed eurozone PMI figures pointing to steady growth in private-sector activity. A similar survey in the US had a muted impact with Wall St ending the day marginally down after a preliminary survey of manufacturing sector growth came in unchanged from August at 53.0 and close to a two-year low.

Sentiment across the currency-bloc was given a further helping hand by comments from ECB kingpin Mario Draghi who hinted that the bank stood by to do more to support growth and inflation but that more time was need to assess the current stimulus programme. Meanwhile, the VW emissions scandal remained pinned to the front pages as the group’s CEO stepped down in what was the first of several expected high-profile casualties. This lent support to the carmaker’s beleaguered shares which rediscovered their poise on fresh buying but any respite is likely to be short-lived as the first of many class action lawsuits got underway.

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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.