Author: trulawmoss

Read the original here:
China’s top trade negotiator Liu He talks to Lighthizer, Mnuchin about ‘resolving core issues’

The slaughterhouse that Iraq has become in the past week is the stuff that nightmares are made of. And this is just the beginning.  The threat emanating from the group calling itself the Islamic State of Iraq and the Levant is so serious to the stability of the region — and beyond – that even Iran said it would not oppose U.S. military intervention if it were aimed at the Islamists who have embarked on a rampage of murder and looting across Iraq. The stunning and unexpected victories by the Islamists are very worrisome. In a region… Read more…

Go here to see the original:
Why ISIS Won’t Stop With Iraq

Crude oil prices soared as the US signaled lifting export ban while inventory might have dropped last week. The rally was in spite of a rather mixed US economic picture. US retail sales disappointed in April while the March reading was revised up to the strongest level in 4-years.

View post:
Crude Prices Gained Despite MIxed US Retail Sales

Asian shares climbed higher amid expectations that the Fed would delay its QE tapering. Meanwhile, Japan’s Prime Minister noted that the country is undergoing a moderate pace of economic recovery. As the US has now averted the default risk, the focus of the week is returned to economic data and central bank meetings.

Read the original: 
Economic Data Once Again Under the Spotlight

Ongoing debt ceiling stalemate and poor services ISM data sent stocks lower although losses were pared later in the day. House speaker John Boehner was reported to have told other Republican policymakers that he would avoid a Federal default. Meanwhile, several Fed presidents talked about the impacts of the shutdown.

Read the original post: 
Fed President Warned of the Impacts of Government Shutdown

Crude oil prices retreated after rallying over the past few days. Yet, as conflicts between the West and Syria continued to intensified, oil prices still have room to climb higher. With China and Russia being permanent members of the UNSC, there would be no hope that meaningful action would be adopted through the Council.

Read the original post:
Crude Oil Prices Eased after Days’ of Rallies

Investors hold their breath ahead of the FOMC meeting. Indeed, trading was cautious amid mixed economic data from the US, the Eurozone and China. For the commodity sector, the front-month contract for WTI contract fell -1.10% after rising to a 3-week high the day before while the Brent crude contract edged higher to 104 and then retreated to 102.37, down -1.39%, at close.

See the original post here:
Cautiously Awaiting FOMC, ECB

US WTI crude oil futures opened Thursday’s trading session above $91 a barrel, a day after its biggest price gain in five months as US oil inventories fell unexpectedly lower with mixed data from the US API and EIA.

Latest WTI Oil Price

US Light crude oil futures for June 2013 delivery was trading at $91.58, 09:48 GMT this morning in electronic trading on the NYMEX.

Mixed Data from API & EIA

US crude oil inventories came out mixed with the API (American Petroleum Institute) reporting that US crude oil stocks had fallen by 845,000 barrels to 383.2 million barrels for the week ending April 19th.

Meanwhile, the US EIA (Energy Information Administration) reported that US crude oil inventories rose by 947,000 barrels last week, which was well below market calls for a gain of 1.513 million barrels and sparked yesterday’s rally in energy markets and oil prices moved higher. Total US crude oil inventories stood at 388.6 million barrels as of last week.

Brent and WTI Spread

On the ICE Futures Exchange, Brent oil futures for June 2013 delivery rose to $101.63 a barrel, with the spread between the Brent and US WTI crude contracts narrowing to around $10 a barrel.

Goldman Sachs yesterday cut its three month outlook for Brent oil prices to $100 a barrel from $110 and lowered its 2013 forecast to $105 from $110, citing concerns over Chinese oil demand prospects.

“Commodity returns have dropped sharply so far in April as weaker-than-expected macroeconomic data releases in the US, Europe and China furthered concerns around global economic growth,” New York based analyst Samantha Dart said in the report. “The negative sentiment in the market has weighed on cyclical commodity prices in particular.”

China’s demand for oil slowed down significantly from January to March, and the bank recently cut its outlook for the country’s economic growth in the second quarter, according to the report.

“Our China economists see near-term headwinds to real growth improvement continuing,” the bank added.

Continued here: 
WTI crude oil price jumps above $91 as US oil inventory stocks fall

The euro currency remains firm against the US dollar this week and it’s surprisingly resilient to all the negative comments that seem to be coming from all directions, including Germany and Brussels, but for how long will the euro hold up?

Latest Euro Exchange Rates

As of 08:26 GMT this morning 1 euro bought $1.30510 US dollars (the 52 week low is $1.20610) and against GBP the euro bought £0.85270 (the 52 week low is £0.77790). Looking at the numbers, it’s a fair bet to say that any downward correction for the eurozone’s shared currency could easily wipe 10 percent off the value of the euro, which would take it back to 52 week lows.

Euro Pessimism Growing

On Wednesday one of the German government’s closest economic advisers claimed that the euro has a “limited chance of survival” and may only endure another five years. Dr Konrad, chairman of a scientific council that advises the German finance ministry, said: “Europe is important to me. Not the euro. And I would only give the euro a limited chance of survival.”

Asked whether he thought the single currency would last five years, the economist said: “A concrete period is hard to identify as it depends on so many factors. But five years sounds realistic.”

This pessimistic judgment by a senior adviser runs counter to the official German government view that the euro must be held together for the sake of unity in Europe.

Eurozone Interest Rates

Meanwhile, ECB policymakers have once again rebuffed suggestions that Europe should ease up on austerity and said that while the central bank has room to cut interest rates, such a move would not necessarily help the economy much. This news comes after recent hints from Barosso and Draghi that interest rates cuts could be on the cards as early as next month. So what’s going on?

The ECB decided to leave interest rates on hold this month, but President Mario Draghi said the bank would “monitor very closely” all data and stands “ready to act” to help the euro zone climb out of recession.

One thing is for certain as the most recent surveys and data have pointed to economic weakness spreading to the eurozone core, and on Wednesday Germany’s Ifo sentiment indicator came in weaker than the most pessimistic of forecasts as poor exports undermined Europe’s largest economy. With Europe’s economy in meltdown mode, a high valued currency will not help matters. Expect the euro to head lower anytime soon.

The rest is here:
Euro currency surprisingly resilient to negative comments but for how long?

Financial markets slipped on concerns over the election in Italy. Exit polls suggested that a hang parliament would be formed amid the neck to neck race between the centre left party and Silvio Berlusconi’s centre right coalition. In China, HSBC’s flash manufacturing PMI was disappointing but the results were likely affected by Lunar new Year holiday.

Excerpt from: 
Financial markets Weakened on Italian Political Uncertainty