Europe's Cold Weather

(Reuters) - Germany's manufacturing sector unexpectedly shrank at the fastest pace in nearly three years in April, denting hopes it can drive growth in the euro zone and casting a shadow over upbeat business sentiment surveys. Markit's manufacturing Purchasing Mangers Index (PMI) fell sharply to 46.3 from March's 48.4, according to a flash estimate released on Monday, well below the 50 mark which would sign al growth in activity. It marked the fastest rate of contraction since July 2009 in the sector, which has been hit by a decline in some exports as the debt crisis in the euro zone has choked demand from key trading partners. Reports are that sales to southern Europe are particularly weak, so there is some evidence of troubles in the periphery (of the euro zone) spilling over to the ...

Gold prices rose on Thursday as its fall to a near three-month low the previous day tempted some buyers back, but gains were capped by a rise in the dollar and fading hopes for more U.S. monetary stimulus. Spot gold was up 0.6 percent at $1,628.34 an ounce at 1420 GMT. It briefly broke back above $1,630 an ounce as a drop in jobless claims pulled the dollar from its highs and stocks from their lows, but was unable to sustain the move. Commerzbank analyst Daniel Briesemann said a countermove after the sharp price fall of recent days was to be expected, but said he expects prices to trade lower, possibly below $1,600 an ounce, after the current correction has run its course. "Gold is highly correlated to equities and commodities at the moment and as long as the equity markets and the ...

(Reuters) - Oil prices held steady on Tuesday as better-than-expected German economic data and a successful Italian bond auction eased fears about European demand, while worries about supply disruption due to Middle East tensions continued to underpin the market. Brent crude futures rose 11 cents to $118.04 a barrel at 1137 GMT. U.S. crude was up 47 cents to $101.38 a barrel. Analysts and traders said good newsflow out of Europe had helped the euro rally against the dollar and lifted risk assets as investor sentiment about European demand growth had improved. "We had some successful bond auctions out of Italy, and the German data was better than expected," said Michael Hewson, an analyst at CMC Markets. "That has taken the sting out of the Moody's downgrades." The German ZEW survey, ...

(Reuters) - Brent crude oil rose above $116 per barrel to a six-month high on Tuesday as threats from Iran to ban exports to some European states stoked supply concerns, overshadowing fears that Greece's debt crisis was worsening. Brent's premium to U.S. crude oil stayed around $19 a barrel, near its highest since November, as a severe wintry weather spread across Europe and as simmering tensions between the West and Iran escalated. But Greece's wrangling over a bailout fund helped cap those gains. Front-month Brent touched $116.70 , up 77 cents and its highest since early August, before easing back to trade around $115.68 a barrel by 4:20 a.m. ET, down 25 cents. U.S. oil slipped 30 cents to $96.61. "The geopolitical events surrounding Iran and the Middle East and the severe cold ...

(Reuters) - Brent futures held steady near $116 on Tuesday, after settling at a six-month high in the previous session, due to a cold spell in Europe and supply concerns from the Middle East, while fears Europe's debt crisis was worsening weighed on the market. Brent's premium to U.S. oil stayed around $19 a barrel, near its highest since November, due to the weather and as the United States further tightening sanctions against Iran, stoking already simmering tensions in the region. But Greece's wrangling over a bailout fund helped cap those gains. Front-month Brent fell 16 cents to $115.77 a barrel by 0546 GMT, after gaining for five straight days. U.S. crude slipped 17 cents to $96.74. "The geopolitical events surrounding Iran and the Middle East and the severe cold weather sweeping ...

The Weekly Bottom Line : 11/11/2011 HIGHLIGHTS OF THE WEEK United States This week markets laid siege to Italian sovereign debt, driving yields on 10-year bonds to levels not seen since the country adopted the common currency a decade ago. The longer such rates are sustained, the greater the risk that Italy becomes insolvent, and is forced into a messy default. Two things must happen for the crisis to be contained. First, investors must regain confidence in Italy's ability to make good on future debt obligations. Second, the European Central Bank (ECB) must act in a more aggressive role as lender of last resort. Stateside, the deficit reduction committee is nearing its November 23rd deadline for coming up with $1.2 trillion dollars in fiscal savings over the next decade. ...

(Reuters) - Brent crude held above $109 per barrel on Friday as financial markets awaited two key summits of European leaders to agree a solution to the euro zone's debt crisis. France and Germany said European leaders would examine in detail a global solution to the crisis on Sunday and aim to adopt the plan on Wednesday at the latest. Stocks bounced after Paris and Berlin said a comprehensive euro zone debt deal was on its way, if a little late, although a weaker euro and rising bund futures suggested not everyone was convinced. The long-running saga was meant to be concluded at a meeting of regional leaders over the weekend, but disagreement over the make-up of the sovereign rescue fund stalled talks. Failure to deal with the debt crisis is damaging confidence in Europe. German ...

(Reuters) - Brent crude prices rose on Thursday, recovering from intraday lows after a joint statement from France and Germany eased concerns about deep divisions hampering efforts to resolve Europe's debt problems. The statement said European leaders would discuss a global solution to the crisis on Sunday but no decisions would be adopted before a second meeting to be held by Wednesday. U.S. crude pared losses as the front-month November contract expired and went off the board. The euro turned higher against the dollar and the S&P 500 and Dow Industrials on Wall Street moved up after they had fallen on uncertainty about whether European leaders would even meet, much less fashion a deal to resolve the debt crisis. The unsettled situation in Europe and its potential to stifle demand ...

The Week Ahead Highlights * EUR rebound is fundamentally suspect * Has Europe's sovereign crisis turned a corner? * Fears of aggressive China tightening may unwind soon * A chilly fourth quarter for the UK * Precious Metals may enter Q1 2011 predicted "Buy zones" next week * Key data and events to watch next week EUR rebound is fundamentally suspect The EUR finished out the past week at two month highs against the USD and posted strong rebounds on the crosses as well. The EUR recovered even after EU finance ministers failed to deliver a concrete long-term debt resolution mechanism (see more below), postponing a likely plan to late March. While there has been some movement on the part of Germany to show greater willingness to provide assistance to the periphery, ...