Contract Narrowed The Spread

Major European PMI Manufacturing data misses expectations; German IFO Business Confidence falls for the first time in 7 months Economic Data (RU) Russia Gold & Forex Reserve w/e May 18th: $514.3B v $518.8B prior (DE) Germany Q1 Final GDP Q/Q: 0.5% v 0.5%e; Y/Y: 1.7% v 1.7%e; GDP WDA Y/Y: 1.2% v 1.2%e (DE) Germany Q1 Private Consumption: 0.4% v 0.2%e; Government Spending: 0.2% v 0.3%e; Domestic Demand: -0.3% v 0.0%e; Capital Investment: -1.1% v -0.3%e; Construction Investment: -1.3% v -0.4%e; Exports: 1.7% v 0.9%e; Imports: 0.0% v 0.3%e (CH) Swiss Apr Trade Balance (CHG): 1.3B v 1.9Be; Real Exports M/M: -0.9% v +0.2%e; Real Imports M/M: 2.6% v 5.9% prior (FI) Finland Apr PPI M/M: -0.1% v +0.4% prior; Y/Y: 1.4% v 1.4% prior (FI) Finland Apr Preliminary Retail Sales Volume Y/Y: -2.0% v ...

Brent crude slipped below $107 per barrel on Friday to its lowest in 2012 as a worsening euro zone crisis and weak U.S. economic data raised fears of a global slowdown that could dent oil demand. Worries about the euro zone, already roiled by Greek political chaos, mounted as Spain slipped into a recession, pushing the euro to a four-month low while sluggish data out of the United States sent worrisome signs about a still-fragile recovery at the world's largest economy and top oil consumer. Brent crude was down 64 cents to $106.85 by 2:47 a.m. EDT after slipping to its lowest level for the year at $106.40. Front-month Brent is on track to post its largest three-week fall since May 2011. U.S. crude was down 58 cents to $91.98, heading for its largest three-week fall since August 2011. " ...

Brent crude oil slumped more than 2 percent on Thursday, touching the lowest price since December, as investors avoided risky assets due to mounting fears that turmoil in Greece could spread to other stressed euro zone economies. U.S. crude was down by less than Brent, which reduced Brent's premium against U.S. crude to below $15, from above $19 the previous session, as owners of the U.S. Seaway pipeline announced just after midday that its reversal was completed as expected. The initial flow of crude that will head for the main U.S. refining center in Houston was to occur by the weekend, a development aimed at easing the supply glut of U.S. crude at the delivery hub in Cushing, Oklahoma. Easing that glut should narrow the premium that Brent has enjoyed over U.S. crude. But market focus ...

Brent crude held steady above $109 on Thursday, supported by a rebound in U.S. oil prices on hopes that a reversal in oil flow for the Seaway pipeline will reduce a supply glut in the U.S. Midwest. Investors cast aside worries about higher oil supply and the euro zone crisis that have dogged the market for the past few weeks and bought U.S. crude futures, allowing the front-month contract to rebound for the first time in five sessions. West Texas Intermediate (WTI) crude was up 61 cents to $93.42 by 0641 GMT, after rising to an intraday high of $93.72. Brent crude for July edged down 21 cents to $109.54 but recovered from a low of $109.01, the lowest intraday price since January 25. Brent-WTI spread for July also narrowed to $15.74 after widening to $19.46 on Wednesday, the widest ...

Oil prices ended mixed in choppy trading on Thursday as weaker-than-expected Chinese trade data, higher OPEC production and evidence of a strengthening U.S. jobs market muddied the oil demand outlook. China, the world's second largest oil consumer after the United States, reported that its exports and imports in April grow at a far slower rate than forecast. Its trade performance that month was also surprisingly weak, and analysts said the government would need to loosen monetary policy to spur expansion or risk missing annual growth targets. The Organization of the Petroleum Exporting Countries said it pumped 1.62 million barrels more per day, to 31.62 million bpd last month, as Iraq ramped up output and Libya's oil industry recovered. That's above the 30 million bpd target it had set ...

Sunrise Market Commentary - Fixed Income Weak US payrolls push core bonds higher again - On Friday, it was weaker US payrolls that helped core bonds eke out more gains, but non-core bonds held up quite well. Spreads even narrowed in the intra-EMU bond markets. We fear that this won't be the case today, as French and Greek election results inject uncertainty into markets. - Currencies: Euro testing key support levels - On Friday, trading in the major euro cross rate was rather calm, but the pressure remained to the downside. The US payrolls were unable to change this pattern. This morning, EUR/USD is testing the key 1.2974 support while EUR/GBP is trading south of the 0.8068 level. A sustained break below these levels would raise a red alert for the single currency. The ...

(Reuters) - Oil prices turned higher on Tuesday after data showing the U.S. manufacturing sector expanded in April at its fastest pace in 10 months eased concerns about slowing economic growth. The supportive U.S. factory data from the Institute of Supply Management (ISM) helped U.S. crude end at its highest settlement in five weeks and lifted equities on Wall Street, sending the S&P 500 index up 1 percent and the Dow to its highest level since December 2007. .N Technical buying kicked in after U.S. crude moved above the 50-day moving average at $105.21 a barrel. Crude had hit formidable resistance at that level in recent sessions. "The ISM data pushed crude up and strong equities are helping, and when crude moved above the 50-day moving average that triggered some technical buying," ...

(Reuters) - Asian shares and the euro eased on Monday, but losses were kept in check after a report showed Chinese factory activity stabilizing in April, alleviating worries about a sharp deceleration in the world's second-largest economy. European shares were also expecting a lower start, with financial spreadbetters predicting that major European markets would open down as much as 0.6 percent. U.S. stock futures were down 0.2 percent. The HSBC Flash Purchasing Managers Index showed China's factory output ticked higher, new business rose from multi-month lows and export orders perked up, though not sufficiently for a private sector survey of purchasing managers to flag a return to expansionary territory. The index, the earliest indicator of China's industrial activity, improved to 49.1 ...

(Reuters) - Oil futures fell on Wednesday as U.S. crude inventories rose more than expected last week to post the biggest four-week rise in more than three years, outweighing larger-than-expected drawdowns in gasoline and distillate stockpiles. Oil's losses came as commodity markets dropped broadly to reverse the previous day's gains, as renewed euro zone concerns dented investor appetite. U.S. crude stocks rose 3.9 million barrels in the week to April 13, data from the U.S. Energy Information Administration (EIA) showed, dwarfing the forecast in a Reuters poll for a 1.4 million barrel increase. In four weeks, U.S. crude stocks have risen nearly 22.8 million barrels, their biggest four-week build since February in more than three years, EIA data showed. U.S. gasoline futures fell ...