|News||Crude on the rise extending yesterday's gains|
|Analysis||Crude oil rose at the opening of today’s session after yesterday’s data from the U.S which showed an improvement in the U.S services sector, the thing that surprised investors and made them more optimistic about the economy.|
We saw the world's leading economy services sector activities expand at a faster pace last month, which was absolutely not predicted throughout this toughened period and overall weakened economic conditions of the country, a sign of hope, especially after a weak report job that seen last week that showed a weak labor sector in the U.S.
Crude oil futures for October settlement are trading higher this morning at $86.39 recording the high of $87.36 and the low of $86.14 a barrel, where it is currently trading at $87.25, extending yesterday’s gains. On the other hand, the U.S dollar index that trace the dollar performance aginst six major currencies, retreated today reversing from yesterday’s gains, as it opened the session at 75.92 and reached the high of 75.94, then it retreated to reach so far the low of 75.22, where it is currently trading at 75.49.
Crude benefited early yesterday from the SNB move which intervened in the markets by setting a minimum exchange rate for the franc versus the euro at 1.20 in order to suspend the franc's runaway which affected Swiss exporters and raised deflation threats.
The SNB’s move has affected the markets positively by spreading optimism among investors that central banks would intervene in the markets to support growth.
Asian stocks rose today led by the BoJ’s decision to keep the benchmark interest rate steady between 0.0% and 0.1%, also, we had seen a faster pace of growth in the Australian economy with 1.2% expansion, beating the analysts’ expectations.
The Italian Prime Minister, Silvio Berlusconi, called for confidence vote on the adjusted 45.5 billion euro austerity package as the government attempts to survive the market pressure and demands from the ECB and the EU.
On the other hand, the German Finance Minister announced yesterday that Greece should apply the austerity measures as soon as possible in order to get the second bailout, as the Greek finance minister pledged to quicken the steps needed to apply the austerity measures.
Today, we have plenty of data about the industrial sector in UK and Germany, hoping that it will show a little of improvement unlike last week's data that showed slower than expected growth in the sector, labor and service sector in Europe.