Oil Rises On Spread

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 ...

USD remains soft after Bernanke indicated that the door was open for more stimulus if necessary at yesterday's press conference. Markets seemed to focus on this despite the upward revisions to the growth outlook and downward estimates of the unemployment rate this year. Weekly initial jobless claims today came in higher than consensus with a print of 388k from the prior 389k which was revised higher from 386k. The 4-week moving average in initial claims rose by over 6k for the third straight week - not an encouraging sign for the labor market. With employment struggling to gain traction and mixed interpretations of yesterday's FOMC meeting, markets are likely to focus on data surprises and price action will be impacted by QE3 speculation as it is still on the table. UST yields are lower ...

Dollar Modestly Firmer as Ranges Persist The dollar was modestly firmer with the dollar index finding support around the base of its daily ichimoku cloud in a relatively quiet NY session. The GBP outperformed following the release of the Bank of England's MPC minutes which showed a shift in stance as the dovish Posen changed his vote away from more QE. EUR/GBP traded near lows that have not been seen since late Aug. 2010 as the pound gained against the euro. European equities finished in the red amid continued debt concerns and sovereign yields spreads were mixed as EU Commissioner Olli Rehn said that Spain and Italy are taking effective action. Elsewhere in Europe, the Swiss National Bank (SNB) named Thomas Jordan as its president. Jordan said that the franc is overvalued and that the ...

The Weekly Bottom Line : 30/03/2012 HIGHLIGHTS OF THE WEEK United States February's personal income and spending report revealed some mixed signals about the U.S. economy. Real after-tax incomes declined 0.1%, but real consumer spending managed an impressive 0.5% increase. Even after this solid spending gain, Q1 GDP growth is tracking close to 2%, and growth is unlikely to breakout above the 3% range until the end of 2013. This leaves questions about whether the recent pace of improvement in the job market can be sustained. In a highly publicized speech this week, Bernanke emphasized this theme and made it clear that the Fed is focused on jobs, and stands ready to act if conditions worsen. Canada Equity markets ended the quarter strongly with the S&P/TSX Composite ...

(Reuters) - Asian shares fell on Friday and growth-linked currencies such as the Australian dollar were shunned after data showing shrinking factory activity in China and the euro zone heightened concerns about a slowdown in the global economy. Materials stocks such as miner BHP Billiton (BHP.AX) were prominent among the losers, but crude oil steadied after tumbling overnight and copper bounced off a 2-week low. Data on Thursday showed China's manufacturing sector activity shrank in March for a fifth successive month, while German and French manufacturing suffered a sharp decline that even the most pessimistic economists failed to predict. "Fears of a Chinese hard landing are on the rise; overdone we think," said Vincent Chaigneau, strategist at Societe Generale. "Concerns over Europe ...

(Reuters) - Asian shares rose on Friday, with Tokyo hitting a seven-month high, on signs Greece had successfully closed its bond swap offer for private creditors, although caution ahead of the release of U.S. employment data could check momentum. Preliminary results of Greece's bond swap are expected at 0600 GMT. Ahead of that, officials said there had been a strong take-up of the offer, which would open the way for Athens to secure funding needed to avoid a default. The MSCI Asia Pacific ex-Japan index .MIAPJ0000PUS rose 0.3 percent while Japan's Nikkei average .N225 opened up 1.5 percent, after global stocks had posted their best day in more than two months on Thursday. The euro was at $1.3272, not far from an overnight high of $1.3291, and commodity currencies such as the Australian ...

(Reuters) - Asian shares fell on Monday, as investors turned cautious about riding further on liquidity-driven optimism without seeing more evidence of firmer global growth and on concerns about the impact of a slowing Chinese economy. Market sentiment has been improving since late last year as major central banks around the world flooded the financial system with ample funds to stave off fears of a credit crunch, allowing money to flow into a broad range of assets. But while recent U.S. data suggesting a recovery has prompted investors to shift their focus towards economic fundamentals and away from long-running troubles in the euro zone, they remain watchful of developments in the debt crisis and also rising oil prices. "Markets seem to be in a holding pattern. Investors are waiting ...

Fundamental News: Today’s highlights: GDP (MoM) (CAD, 13:30 GMT) The U.S ISM Manufacturing Index dropped to 52.4 in February from 54.1 in January, although a reading above 50 indicates continued growth in the sector, according to a report released Thursday by the Institute for Supply Management. In addition, U.S. construction spending came in at a seasonally adjusted annual rate of $827 billion, representing a 0.1 percent drop from December levels, according to figures released Thursday by the Commerce Department. First-time claims for U.S. unemployment benefits showed an unexpected decrease in the week ended February 25th, according to a report released by the Labor Department on Thursday. Initial jobless claims edged down to 351,000 from the previous week's revised figure of 353, ...

(Reuters) - Brent crude oil ended lower on Friday as investors booked profits after gaining for four straight days and hitting overbought conditions as it topped $120 a barrel. But Brent crude posted its fourth consecutive weekly gain, with prices elevated due to fears of supply disruptions in Iran and rising confidence that Greece will finally secure a debt bailout deal by Monday. U.S. crude rose for the third consecutive day, ending at the highest level in nine months, and chalking up its second straight week of gains. A slew of recent upbeat economic data has helped U.S. crude advance, although a report on Thursday that U.S. consumer prices rose the most in four months in January due to a spike in gasoline prices raised concerns that higher energy costs could slow the economic ...