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(Reuters) - Oil prices rose back towards $108 per barrel on Monday, after last week's falls, supported by tension between Western countries and Iran as talks were resuming this week and further lifted by the possibility of growth stimulus in China. Fears of a Greek exit from the euro continued to weigh, however. A summit of the Group of Eight major economies at the weekend failed to deliver any signal Europe would act quickly to address the risk of a chaotic Greek exit from the euro, leaving investors on alert and curb an upturn in oil prices. "Gains may be short-lived as EU politicians as usual are having a hard time agreeing on anything. However (there is) an interesting week ahead with the European debt crisis posing a risk on the downside and the potential for nuclear talks with ...

Weekly Economic and Financial Commentary U.S. Review First-Quarter GDP Growth Slows The U.S. economy grew at a 2.2 percent annual rate in the first quarter, somewhat slower than the consensus had expected. Consumption remained the primary driver of growth as business spending slowed and the government sector continued to scale back spending. In our U.S. review section this week, we discuss the GDP report in the context of the big miss in durables and consider what it means for business spending going forward. We also look at a very small change in the Fed statement this week that reflects an improving view on the troubled housing sector. Business Spending Poised for a Slowdown? Durable goods orders for March were ugly. The 4.2 percent drop was the largest decline since the U.S. ...

Fundamental Analysis EUR Spain's EUR 10 billion austerity measures did not ease investor worries the country is likely to be the next to demand a bailout. The borrowing costs for Spanish benchmark 10-year bills rallied almost 20 basis points to 5.94% on Tuesday after Miguel Angel Fernandez Ordonez, the Governor of the Bank of Spain said the country's financials may need extra capital in case the economy slows more than predicted. USD Canadian currency declined reaching a 6-week record low against US Dollar on concern European crisis is regaining momentum amid slowing US recovery. The loonie fell 0.7% to CAD 1.0045 on Tuesday, the lowest figure since February 27. Currently USD/CAD is trading at CAD 1.0018. GBP After a steep loss of 2.2% on Tuesday, FTSE 100 index recovered on Wednesday ...

Fundamental Analysis EUR The jobless rate in Spain advanced by 0.8% or 38,769 in March reaching 4.75 million, government officials said on Tuesday. Annual unemployment level added 9.6% in March. In February Spain's jobless rate of 23.6% was the top level in the European Union. Spain currently works on massive reforms in its labour market. Economists expected the unemployment my surge even more before it will begin to decline. USD US manufacturing PMI expanded more than expected last month, indicating growth for the 32th month in line. The PMI measured by the Institute for Supply Management jumped by 1.0 point attaining 53.4 last month as compared to a February figure of 52.4. Experts had predicted the manufacturing PMI in the US to expand by 0.6 points to 53.0. GBP UK manufacturing ...

(Reuters) - Gold edged up on Tuesday in holiday-thinned trade on the back of a weaker dollar but remained in a tight range as investors awaited cues on the outlook of the U.S. economy and potential policy moves in the world's largest economy. Investors are looking for clues on policy direction from the minutes of the last U.S. Federal Reserve policy meeting, due on Tuesday, although Fed officials on Monday signaled little appetite for further monetary steps to stimulate U.S. growth in an economy that is gradually strengthening. U.S. factory orders due later in the day, as well as a key U.S. employment market report scheduled for release later in the week, are expected to provide some indication on the well-being of the U.S. economy and the necessity for further monetary easing. ...

(Reuters) - Oil markets are difficult to read at the best of times, but what if key data point in different directions and even the world's biggest producer and main consumer can't agree? Policy and investment decisions become very difficult. Oil has risen 15 percent this year to around $125 per barrel on talk the world market is tight and facing a supply crunch. Speculation over possible war with Iran and even the closure of the Strait of Hormuz in the Middle East Gulf has encouraged investors to buy oil in the hope of making large profits. Some industry data suggest the market is right to be worried. Other figures say it may be a wild over reaction. Baseline numbers for demand, supply and inventories are being read quite differently and in some cases are pointing in opposite ...

Fundamental Analysis EUR "We expect euro-zone gross domestic product to contract further in the first quarter of 2012 and very possibly in the second quarter as well" - Howard Archer, chief European economist at IHS Global Insight European exports rose for a third straight month in January, adding to signs the region is recovering after contraction in the fourth quarter. The 17-nation currency bloc posted a trade deficit of 7.6 billion euros in January, said the European Union's statistics agency Eurostat on Friday. USD "Consumers are pretty stretched at this point" - Scott Brown, chief economist at Raymond James & Associates Inc U.S. industrial production was little changed in February, compared to the previous month, said the Federal Reserve on Wednesday. GBP "Both the systemic risk ...

Fundamental Analysis EUR "It is giving us an insurance policy against having any liquidity shock" - Andrea Beltratti, chairman at Intesa Sanpaolo SpA The European Central Bank Wednesday allotted 529.5 billion euros in cheap three-year loans to 800 lenders in effort to boost the euro-area economy. USD "This shows a steady improvement despite all the volatility in stock prices we had last year and shows that we are nowhere near lapsing back to recession" - Tim Ghriskey, chief investment officer at Solaris Group The U.S. economy expanded at a faster pace than expected, adding to signs the recovery is gaining steam. Gross domestic product grew three per cent in the fourth quarter, announced the Bureau of Economic Analysis on Wednesday. GBP "Despite the recent pick up, housing market ...

Weekly Economic and Financial Commentary : 25/02/2012 U.S. Review Housing Market Recovery: A Regional Story This week, data on the housing market pointed to some slight firming. Although new home sales edged down 0.9 percent, existing home sales were up 4.3 percent. Even with the somewhat better housing data this week, concerns remain about the backlog of foreclosures and their effect on the market. Initial jobless claims continued to trend downward last week declining to 351K. The four-week moving average, the best indicator of the trend, also dropped to 359K suggesting sustained declines in layoffs. Jobless Filings Point to Fewer Layoffs The focus of this week's data was on the housing market with the release of existing home sales and new home sales. The housing data ...