Brent front month futures plunge towards $100

Friday, September 05, 2014

European equity markets reversed from recent gains and ended fairly mixed on Friday as weaker than expected US employment data limited the upside potential and decreased risk appetite. The CAC and the London benchmark index finished the session lower by 0.2% and 0.33%, respectively, while the DAX continued its strong uptrend climbing towards 9,750, ending the day 0.44% higher.

The euro continued to remain under pressure trading around 1.2950 following yesterday’s ECB rate cut. The robust German industrial data failed to provide any support to the recent euro weakness. German industrial production rose surprisingly by 1.9% in July, beating expectations of a modest 0.4% rise.

EUR remains under pressure around 1.295

EUR Curncy (Euro Spot )  2014-09-05 17-36-45

In addition, the US payroll data came in far below expectations at +142k vs estimates of +225k but the US unemployment rate fell lower to 6.1% in August from 6.2% in July.

Precious metals edged higher due to the ongoing uncertainty between Russia and Ukraine as well persistent tensions in Middle East. Gold rebounded to retest $1265 per ounce, up 0.3% at the time of writing, while Silver rose above $19.

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  2014-09-05 17-36-55

On the downside, crude oil prices remained under renewed pressure as Brent front month futures plunged to r

etest the psychological level of $100 per barrel.

Brent Front Month plunges towards $100

CO1 Comdty (Generic 1st 'CO' Fut 2014-09-05 17-36-25

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