Simmering Tensions Between

The Week Ahead Highlights Can the ECB save the day? Fed speak provides more transparency but not clarity Bank of Japan easing pressure mounts A very mixed UK recovery Bank of Canada to hold RBA minutes to provide more insight Norges Bank's battle with the Nokkie Market Moves Can the ECB save the day? At the end of last week market sentiment towards the Eurozone took a turn for the worse. Stocks closed down sharply and Spanish 10-year bond yields surged to 6% at one stage. The cost to insure Spanish debt against default reached a record high; while bond yields are a mere 70 basis points away from the euro-era record highs reached in November 2011. Problems have been simmering in Spain for some time, and there was no new news that triggered the sharp dip ...

Brent crude rebounded towards $126 on Tuesday as investors awaited comments from the U.S. central bank after the outlook improved for the world's largest economy amid simmering tension between the West and Iran that could threaten oil supply. The Federal Reserve could later on Tuesday reinforce a view prompted by recent data that the U.S. economy is recovering, buoying the demand outlook for the world's largest oil consumer, but it is unlikely to kick off further quantitative easing. Brent crude rebounded 43 cents to $125.77 by 0812 GMT, after settling down on Monday for the first time in four sessions. The April Brent contract expires on Thursday. U.S. April crude was up 56 cents at $106.90. "The FOMC could recognize that the economy has improved and this will have a positive impact on ...

(Reuters) - Brent crude rebounded towards $126 on Tuesday as investors awaited comments from the U.S. central bank after the outlook improved for the world's largest economy amid simmering tension between the West and Iran that could threaten oil supply. The Federal Reserve could later on Tuesday reinforce a view prompted by recent data that the U.S. economy is recovering, buoying the demand outlook for the world's largest oil consumer, but it is unlikely to kick off further quantitative easing (QE). Brent crude rebounded 64 cents to $125.98 by 0519 GMT, after settling down on Monday for the first time in four sessions. The April Brent contract expires on Thursday. U.S. April crude was up 50 cents at $106.84. "The FOMC could recognize that the economy has improved and this will have a ...

Brent crude oil rose on Wednesday, snapping two days of sharp falls, after the European Central Bank allocated more than $500 billion for cheap loans, spurring buying of riskier assets while fears about supply disruption from Iran also supported prices. Front-month Brent rose $1.35 to $122.90 a barrel by 1440 GMT, after sliding $2.62 on Tuesday to settle at $121.55. However, it was well below the high for the day of $123.20, and it has retreated from highs above $125 set last week, and analysts said that worries about how high oil high prices were hurting demand could limit further gains. "We're seeing Singapore gasoil destroyed and residual fuel oil is hurt, so there are the first signs of weakness due to the high price environment," Seth Kleinman, analyst at Citigroup said. "However ...

(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 ...

Brent crude prices rose to a near three-month peak on Friday in heavy volume trading after a report showed the U.S. economy in January created jobs at the fastest pace in nine months, fueling hopes of stronger demand in the top petroleum-consuming nation. Both Brent and U.S. crude extended gains late as the euro recovered against the dollar and as oil investors covered short positions ahead of the weekend, eyeing simmering tensions between tensions with the West over Tehran's nuclear program. Oil had initially rallied ahead of the jobs report after Iran's supreme leader warned of retaliation over "threats of oil embargo and war." "The euro came back and there were shorts being covered ahead of the weekend with the situations in Iran and Greece still out there," said Stephen Schork, ...

(Reuters) - Brent crude futures held steady around $110 on Monday as concerns about European demand countered worries about supply disruptions from the Middle East due to simmering tensions between the West and Iran. Euro zone finance ministers will on Monday decide what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens. Resolving the issue is key to avoiding a chaotic default that could threaten the entire currency bloc. Also on Monday, European Union governments are expected to agree on new economic sanctions against Iran over its nuclear program, including plans to phase in an oil embargo. Front-month Brent rose 30 cents to $110.16 a barrel by 1:04 a.m. ET, trading in a narrow range. U.S. crude fell 31 cents to $98.02, after ...

Gold rose 2.5 percent on Tuesday, on track for its largest one-day gain in about two months, as economic optimism sparked broad-based equities and commodities rallies as well as bullion buying after the metal's heavy losses last week. Silver was up over 6 percent, set for its biggest one-day rally since May 2011. Gold was moving in lockstep with the euro, after an encouraging U.S. manufacturing report and positive data from China and Germany suggested that global economic recovery was gaining steam. A $4 rally in crude oil futures on rising tensions between Iran and the United States and surging grain prices also supported gold's gains. "With the sell-off that we had based on very low volume to end the year, the gold market snapped back and a significant amount of bargain ...