LONDON: Global oil prices rebounded yesterday, reversing earlier losses on the back of buoyant global stock markets, while traders also shrugged off Chinese demand concerns and awaited key US data, analysts said. In late afternoon deals in London, Brent North Sea crude for delivery in July jumped $1.23 to $103.27 per barrel.
New York’s main contract, West Texas Intermediate (WTI) light sweet crude for July, gained 65 cents to $94.10 a barrel.
Wall Street equities extended their rally in early trade yesterday, shrugging off a rise in the US trade deficit to follow European and Japanese shares higher, as stock market investors also awaited fresh economic data.
At the same time, traders are eagerly awaiting the US government’s weekly snapshot of energy inventories on Wednesday, followed by the all-important non-farm payrolls (NFP) report on Friday.
The NFP figures are likely to provide clues on whether the Federal Reserve will maintain its economic stimulus measures. Other US data due this week will include industrial output numbers and the Fed’s outlook on economic conditions.
European stock markets rebounded to close higher yesterday as traders sat back in their positions ahead of an intense series of US data scheduled for later this week, analysts said.
London’s FTSE 100 index of leading shares rose 0.51 percent to end at 6,558.58 points, while Frankfurt’s DAX 30 index added 0.12 percent to 8,295.96 points. In Paris, the CAC 40 gained 0.13 percent to finish at 3,925.83 points.
“The newsflow will be intense in the next three days and investors are happy to stay in their positions today,” said Xavier de Villepion, a trader at Global Equities. Among the US data coming out later this week are industrial output numbers, May unemployment figures and the Fed’s outlook on economic conditions. Traders in the French capital appeared to have brushed off news that the International Monetary Fund had downgraded its forecast for the French economy in 2013 and 2014. Madrid’s IBEX 35 index meanwhile jumped 0.95 percent to close at 8,363 points, as official data showed that the queue of Spanish jobless benefit claimants had shrunk in May for a third straight month. A strong close on Wall Street on Monday and a rebound in Japan’s stocks index also lent support to market sentiment. Bank shares were among the biggest gainers, with HSBC closing up 1.89 percent to 731.9 pence, Societe Generale jumping 1.42 percent to 31,03 euros and Deutsche Bank up 2.28 percent to 36.73 euros. The euro edged up to $1.3080 from $1.3076 late in New York on Monday. The dollar rose to 100.15 yen from 99.52 yen on Monday.
On the London Bullion Market, the price of gold retreated to $1,399.50 an ounce from $1,402.50 on Monday. The IMF said France’s GDP would contract by 0.2 percent this year and grow by 0.8 percent in 2014, compared to previous predictions of a 0.1 percent contraction in 2013 and 0.9 percent growth next year.AFP
