From Marc to Market:
The US dollar is better bid today
but remains largely in the ranges seen in
recent days. There a few developments to note,
which together are lifting European equities after Asian equities softened.
First, the API
oil inventory estimate showed an unexpected fall of 4.3 mln barrels. An increase of half the magnitude was expected. The DOE estimate, which is
considered more reliable, will be one of the North American highlights
today.
Second, and also
supporting the oil complex today was the "good cop bad cop" routine
by Kuwait. Earlier Saudi Arabia had confirmed
that the freeze in output required Iranian participation, which is widely
understood as unrealistic until it boosts output
toward pre-sanction levels. Oil priced nose-dived,
and today Kuwait plays down Iranian participation. Prices supported, and
the energy sector is helping European equities move higher.
The other set
of developments which have also been supportive are the economic reports from
China and Germany. China's Caixin PMI for services
edged higher to 52.2 from 52.1. This,
coupled with the previously released manufacturing survey, lifted the composite
to 51.3, its highest level in a year. And as if to drive home the
message, Fitch again opined that a hard landing in the world's second-largest economy was unlikely....MORE
