Market Overview - Page 77

Weak Chinese manufacturing data put pressure on the single currency as Europe, particularly Germany, is highly correlated with China. However, the Eurozone’s data is not so bad today. The number of unemployed in Germany rose by 9K, down from 23K.

The official services and manufacturing PMIs were much weaker than expected, adding to the move into defensive assets on concerns over China’s economy. The Manufacturing PMI fell from 49.2 to 48.8 instead of the expected 49.5. Readings below 50 indicate.

Recent eurozone data showed a stronger economic response to the monetary tightening that has already taken place. Spain reported that consumer inflation slowed from 4.1% to 3.2% y/y in May, against expectations of 3.6% y/y. This is a new low.

The dollar continues to rally, having gained around 3.4% from its early May lows, and has hovered around 104.2 for the past four trading sessions. The dollar is in locally overbought territory against a basket of major currencies, the euro.

Silver jumped 2.8% on Friday, an important signal of the end of the bearish momentum that has seen the price fall by more than 13% in three weeks. Although silver is resting on Monday along with most developed markets, Friday’s.

WTI remains within the upward trend formed in early May. However, be prepared for another test of this trend support at $71 and a possible move lower. The current upward trend in oil has been shaped by signs that the.

Gold is finding support in the $1950 area on this week’s declines but is not finding support from buyers on the rally above $1985. Support for this trading range is provided by the area of the late January price peak,.

On Wednesday, the Reserve Bank of New Zealand raised its key rate by 25bp to 5.5%, the highest since October 2008, which was widely expected by markets. The RBNZ’s accompanying commentary was full of dovish signals. The central bank noted.

Another release of UK consumer inflation well above expectations has failed to take the issue off the country’s agenda. The report for April showed a 1.2% rise in consumer prices, compared to the 0.8% that markets were expecting this time.

Weaker-than-expected PMI reports were released today from the Eurozone and the UK, adding to the global Dollar pullback seen in recent weeks. The manufacturing PMI fell to 46.9 in May from 47.8 in the previous month, in stark contrast to.

Preliminary readings of the PMIs for business activity in the euro area generally revealed a worse-than-expected deterioration. According to the composite index, the last time the euro area industry suffered this badly was in 2008-2009, when the economy was in.

The number of active oil and gas drilling rigs in the US fell by 11 last week to 720, returning to a level seen a year ago. This indicates that producing companies focused on efficiency rather than on expansion. Lower.