Crude oil prices extend sharp losses

Wednesday, December 10, 2014

Crude oil prices continue to fall, extending sharp losses this week. WTI front month futures plunged over 1.5% in early trade this morning heading towards $62 per barrel and Brent front month futures slid towards $65 per barrel. The release of the weekly EIA oil inventories report could provide further insight about oil fundamentals this afternoon.

WTI futures plunge towards $62/barrel

CLF5 Comdty (WTI CRUDE FUTURE  J 2014-12-10 09-05-01

Gold rallied above $1230/ounce as risk appetite across equity and commodity markets continues to remain limited following renewed political uncertainty in Greece and Eurozone. Investors’ attention will turn to the release of the US Fed Budget details this evening. 

XAU- Gold spot

XAU Curncy (Gold Spot   $_Oz )  D 2014-12-10 09-05-23

China’s CPI rose 1.4% y/y in November compared to a 1.6% rise in October missing analysts’ expectations. However, Chinese CPI declined sharply to -2.7% in November. Asian equity markets extended sell-off as the Nikkei index plunged over 400 points (-2.25%) towards 17,400. However, the Hang Seng index edged higher and gained 38.69 points (+0.16%) amid speculation the Chinese government will boost stimulus after inflation reports missed analysts’ estimates. JPY climbed 0.4% to reach 119.19 per dollar, verifying a strong uptrend. The JPY has surged 1.9% this week, setting for its biggest three day gain in April.

USDJPY

USDJPY Curncy (USD-JPY X-RATE)  2014-12-10 09-07-40

European equity markets rebounded strongly in early trade this morning following yesterday’s sharp sell-off. However, snap elections in Greece reignite renewed concerns for Eurozone’s economic stability and future prospects. Athens Stock Exchange showed its biggest daily decline since 1987. If Prime Minister Antonis Samaras fails to win sufficient votes and support for his candidate Stavros Dimas at the Presidential elections, then we could expect a general election to follow in January 2015. 

 

Events for today:

 

0130

CN

Nov

CPI & PPI

0500

JP

Nov

Consumer confidence index

0930

UK

Oct

Trade Balance & Non EU

1530

US

w/e

EIA Energy Stocks

1900

US

Nov

Fed Budget

 

All times UK Local Time

 

More from: Myrto Sokou