Crude oil fluctuated today after a three week decline amid fears and concerns that the global economy is slowing, in addition to the data which was released from Japan that showed less than expected growth contraction, which eased some of the jitters.
Light sweet crude oil for September opened today at $85.52 a barrel recording the intraday high at $85.63 a barrel and a low of $84.91 a barrel and is currently trading around $85.56 a barrel.
The USDIX which measures the performance of the green currency against other six major currencies opened today at 74.52 recording the highest at 74.57 and the lowest at 74.36 and is currently trading around 74.49.
Japan's annualized GDP preliminary reading came out at -1.3% in second quarter, easing from the previous contraction by -3.5% that was revised to -3.6%, and beat expectations for 2.5% contraction, which eased the downbeat sentiment with the start of the Asian session.
Asian stocks rose sharply today on the better-than-expected Japanese economic data and solid U.S. retail sales last Friday that have countered some growth jitters. Asian stock markets extended the global equities rebound spurring demand for higher yielding currencies and commodities.
We can say that stock markets rose after it dropped in the previous period due to the debt crisis in the United States, but positive data worked on raising it again, although the markets is still in a state of tension, especially for the general investment mood noting that some investments are back on the high-yielding currencies but that is not enough for now as the global economy is losing momentum.
Fears are still seen and the downside pressure clear on markets where the President of the international Bank warned yesterday that the loss of market confidence in the world's leading economies like the United States of America and Europe results in pushing the markets to a new danger zone, as he said.
Also an important addition in the context of low confidence in the global economies from the perspective of International Bank's President that the process of finding a solution to the sovereign debt crisis in Europe is late and that the authorities are not moving in the right direction, which reduces market confidence about finding radical solutions to the problems.
Reports this week may show consumer prices rose the least in three months as unemployment restrained spending. The euro zone economy probably expanded 0.3 percent in the second quarter, down from first-quarter growth of 0.8 percent while U.S. housing starts and building permits fell in July all pressuring the negative sentiment to remain dominant this week as well.