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Crude plunges on China slower PMI and rising stockpiles, eyes on Europe

ecPulse
2013-05-23 07:25AM UTC
Doubts over the strength of recovery in China, the world`s second-biggest oil consumer, and the rise in U.S. gasoline weighed on oil prices on Thursday. Meanwhile, the U.S. Federal Reserve is divided on when it may start to pull back its stimulus the dollar rose. Manufacturing in China shrank in May for the first time in seven months to 49.6, reflecting slower domestic demand which is unable to offset softer demand from the U.S. and the European Union, darkening the outlook for demand on oil. Moreover, data from the Energy Information Agency showed that gasoline stockpiles in the U.S. rose 3 million barrels last week to 220 million, near the highest for this time of year since 1999, sparking expectations of a drop in prices, unless demand picks up. - Crude is trading around $93.23 a barrel with the highest at $94.15 and the lowest at $93.10. - Brent is trading around $101.59 a barrel as of this writing after falling 0.89% or $1.01. Also weighing on oil prices is the dollar`s jump to a three-year high at 84.59, as the appetite for safe haven increased after the minutes from the last Fed policy setting meeting triggered speculations the central bank may begin to pull back on its monetary stimulus this year. Comments from the Federal Reserve Chairman Ben Bernanke on Wednesday`s testimony confirmed that reducing the bond purchases will depend on an improvement in the economic data. But Bernanke added that the Fed could "in the next few meetings take a step down" in its purchases. Focus will turn today to Europe, as Euro zone`s PMI and consumer confidence, UK’s GDP and Spain’s bong auction due for later may also offer clues to the health of the troubled region`s economies. The U.S. will release its new home sales and jobless claims. - Natural gas is trading at $4.216 per cubic feet after rising 0.72%. - Gasoline is trading at $2.8034 a gallon after falling 0.57%. - Heating oil is trading at $2.8555 a gallon after falling 0.63%.

France manufacturing PMI rises in May

Fx News Today
2013-05-23 07:08AM UTC

Markit economics reported on Thursday that France`s manufacturing Purchasing Managers` Index (PMI) rose to 45.5 in May from 44.4 in April, beating the expected 44.7. The PMI services   was unchanged in May at 44.3, missing analysts expected 44.5.

Australia inflation expectations rise in May

Fx News Today
2013-05-23 01:30AM UTC

Inflation expectations among Australian consumers rose marginally in Mady, a Melbourne Institute survey showed on Thursday, stirring seats of the policymakers at the Reserve Bank of Australia to consider new measures if the inflation surpases their acceptable target.

The consumers expected inflation rose to 2.3% from 2.2% nonetheless, it stayed within the RBA`s acceptable range of 2-3%.

Ausltralia`s economy is facing many challenges, and ceaseless fallouts of a deteriorating global economy, especially that of China, which showed manufacturing activity swinging to contraction.

Singapore economy expands more than estimate in Q1

Fx News Today
2013-05-23 01:31AM UTC

Singapore’s economy grew to more than markets` estimates in the first quarter of the year, helped by improved performances of the services and construction sectors.

The economy expanded an annual 1.8%, 0.4% higher than market estimates for a 1.4% growth.