West Texas Intermediate Crude Oil Futures Rise on Strong Chinese Manufacturing

West Texas Intermediate Crude Oil Futures Rise on Strong Chinese Manufacturing

Today's update see » Financial Markets.

Spread Betting 25 July 2012

The markets continue to spiral downwards as the prospect of a full blown Spanish sovereign bailout relentlessly rattles investors.

The Eurozone is slowly getting itself into a more and more perilous state. This is largely because the markets do not see growth any time soon and the austerity measures being imposed are crippling and counterproductive.

The sorts of austerity being imposed by Greece and Spain are far beyond what even the IMF itself recommends as the sort of level that will at least give the respective economies a chance to grow.

In the case of the PIIGS their recessions are due to become even more entrenched.

Whilst their profligacy of the past needs to be amended surely it doesn’t take much to see that the proposed measures are having the adverse effect.

As the economies continue to shrink, investors will be increasingly reluctant to lend. This is driving their bond yields higher and higher. The vicious circle of the Eurozone crisis continues.

Yesterday’s troika visit to Greece hardly went swimmingly either. It seems that it was nothing more than an exercise that proved that Greece has little chance of ever meeting its deficit reduction targets.

Things have not been helped either by the ECB’s recent move to no longer accept Greek bonds as collateral thus putting further pressure on the country’s central bank.

The markets have been clear that there was an exceptionally slim chance of the targets set ever being met. As each day passes, the likelihood of an exit appears to increase. For those in the Grexit camp, it is only a matter of time.

All this is putting a dent in investor sentiment. And things haven’t been helped either from the news across the pond that technology darling, Apple, have missed their earnings targets for the first time since 2003.

Apples results are on top of a string of disappointing results in the US which caused the Dow Jones to slip further into the red for the third straight session. Also see Spread betting on Apple shares.

Speculation that the Federal Reserve might act to boost economic growth allowed a late comeback but not enough to erase the early damage. Overall, the Dow Jones declined 100 points to close at 12,617.

This of course has had a knock-on effect for European trade this morning with the FTSE 100 index commencing the session in the red, down some 10 points to 5490. Although that is much better than where we had been calling the index earlier.

A highlight for today will be the UK GDP figures this morning. They are expected show a decline of 0.2% confirming a triple digit recession.

It’s not unreasonable to expect our economy to be suffering from the malaise of our biggest trading partners on the continent.

Investors are losing confidence in Greece meeting its debt targets. They are also fearing bailout for Spain. In addition, Germany was warned it might lose its much coveted AAA rating and that has put extra downside pressure on the euro.

As a result, it came as no surprise to see the euro losing another 54 points to $1.2061, a new multi-year low for the closing price.

This morning at least, there’s a little bit of a squeeze on the bears and we’ve already seen the single currency get itself back above $1.2100.

It seems trading in gold futures has turned a bit boring. Investors are largely undecided on whether to buy the metal and await the dollar depreciation from QE3 or sell it given a strengthening dollar.

Yesterday, we saw a modest rise of $3.60 to $1,580.2. Nevertheless, as mentioned in previous comments, the sideways movement dominates the view. At the time of writing the bulls are attempting to push the market higher as it trades at $1,586.

Following two days of heavy losses, bargain hunters made a cautious approach pushing the West Texas Intermediate crude oil prices 45¢ higher to $88.50.

Some extra help for the buyers might have come from news that manufacturing in China remains resilient. However, with the euro in freefall against the dollar, it could be a real struggle for buyers to stay optimistic about oil prices.

Under no circumstances are the comments and the information provided herein to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice.

Neither CleanFinancial.com nor Financial Spreads or any contributing author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Financial Spreads » "With FinancialSpreads.com you get all the advantages of
Spread Betting as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." read Financial Spreads review.

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary

Article provided / approved by Financial Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110

'West Texas Intermediate Crude Oil Futures Rise on Strong Chinese Manufacturing' edited by SD, updated 25-Jul-12

Related Articles:

Financial Markets, updated 20-May-13
Financial Markets - your daily update on the markets with views and opinions from the insiders, plus a look at...read article: Financial Markets.

Online Spread Trading, updated 17-May-13
A look at the latest spread betting markets plus company reviews, compare prices and details on where to free charts and free live prices....read article: Online Spread Trading.

FTSE to Underperform as Constituents Go Ex-Dividend, updated 24-Apr-13
Although today's start is expected to be firm, the FTSE is set to under perform its peers as some constituents go ex-dividend, knocking 9 points off the index. The corporate earnings in the US continued to...read article: FTSE to Underperform as Constituents Go Ex-Dividend.

Renewed Demand Sees the Gold Rebound Continue, updated 23-Apr-13
Gold continued its rebound yesterday, with the online spread betting market gaining $17.7 to $1,426.2, on reports of renewed demand for coins, bars and jewellery. After suffering from such a violent...read article: Renewed Demand Sees the Gold Rebound Continue.

Index Trading: Nikkei Hits 5yr Highs as Monetary Policy Remains Unchallenged, updated 22-Apr-13
Asian markets are also trading sharply higher, led by the Japanese Nikkei which is nearing a 5 year high. Japan's optimism seems to be founded on the fact that they didn't receive any explicit singling out at the...read article: Index Trading: Nikkei Hits 5yr Highs as Monetary Policy Remains Unchallenged.

Dow Jones Falls as US Corporate Earnings Disappoint, updated 19-Apr-13
The US corporate earnings season continued to disappoint investors yesterday with the Dow Jones falling 110 points to 14,496 as a result. The pessimism was also supported by weaker than anticipated economic...read article: Dow Jones Falls as US Corporate Earnings Disappoint.

Poor Eurozone Ecostats Weaken the EUR/USD Spread Betting Pair, updated 18-Apr-13
The economic data coming out of Europe yesterday was pretty dismal, with auto sales reaching a 20 year low. Consequently, the euro dropped versus the dollar, effectively giving back the previous day's gains by...read article: Poor Eurozone Ecostats Weaken the EUR/USD Spread Betting Pair.

Improved US Housing Data Boost the US Crude Oil Spread Betting Market, updated 17-Apr-13
Better figures for the US housing sector bolstered crude oil demand yesterday, pushing the price of a barrel of US crude oil up by $1.48 to $88.83. That saved the day as crude prices had fallen to an intraday low of...read article: Improved US Housing Data Boost the US Crude Oil Spread Betting Market.

Slowing Chinese Economy Spurs Gold's Largest Drop in 33-Yrs, updated 16-Apr-13
Those trying to catch a falling knife after Friday's plunge were in for a nightmare session yesterday as the gold spread betting market posted an even bigger drop. The precious metal lost an incredible $129.2 to...read article: Slowing Chinese Economy Spurs Gold's Largest Drop in 33-Yrs.

Bearish Momentum Sees the Gold Spread Betting Market Break Below $1500, updated 15-Apr-13
The bearish momentum in gold undoubtedly gathered pace on Friday as the market price crossed below the psychologically important $1,500 mark. In a violent nosedive, the precious metal plunged $72.7 to...read article: Bearish Momentum Sees the Gold Spread Betting Market Break Below $1500.

First Page << 1 2 3 4 5 6 7 8 9 10 11 12 >> Last Page

Daily Spread Trading Index

Index of spread trading articles - the daily Spread Trading update from Financial Spreads, for more articles see the Spread Trading News Index.

Q) Average Trading Results?

A) Get free trading tips, offers, price updates, important news and more! All Free - Click here!

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.

1) Daily Trading Tips

2) Financial Tips

3) Financial Tipping