Crude oil recovers after declining for 7 days as the steep fall makes oil price look more reasonable. Moreover, China's record crude oil processing volume also boosted the market. Currently trading at 71, the benchmark contract for crude oil edges +0.7 % from previous day's close. However, it will not be able to erase the loss made in the past 7 days.
In China, refining volume climbed +21% yoy to 33.4M metric tons in November. Gasoline surged +11% yoy to 6.33M tons while diesel output climbed +14% to 12.4M metric tons. Kerosene production soared +33% to 1.3M tons but fuel oil production slid -4.6% to 1.58M tons. Apart from cold winter, oil companies also lifted processing capacity after the government adjusted the oil pricing mechanism last December. The new scheme takes into account the cost of crude oil and ensures refinery profits.
At the same time, the country's factory output rose +19% yoy, the strongest increase since June 2007. These were mainly helped by the government stimulus package and record bank lending.
Gold rebounds for the second day and rises to 1140 in European session. However, for confirmation that the uptrend has resumed, the yellow metal needs to break 1170.
Stock markets also stabilize and concerns about sovereignty risk seemed to have moderated for the time being.
In Asia, the MSCI Asia Pacific index added +0.8%, mainly driven by bullish economic from China as well as rebound in commodity stocks. Japan's Nikkei 225 Stock Average gained +2.5% and Hong Kong's Hang Seng Index rose +1%.
In Europe, equities also stage a broad-based rebound. UK's FTSE 100 Index soars +1 to 5299 while Germany's DAX and France's CAC 40 gain +1.2% and +1.7% respectively.