EU Bullet Report | Commodity Currencies in Driving Seat as Market Reversed

After initial dip over Doha disappointment yesterday, crude oil staged a rebound on news of Kuwait oil workers’ open-ened strike for protesting a proposal to cut wages and benefits of all public sector employees. The country’s crude production dropped by more than half on Sunday.

• Oil and GOLD: Oil prices edged up in early trading on Tuesday as an oil worker strike in Kuwait cut huge amounts of crude out of the supply chain. But analysts warned that the disruption would be short-lived and that markets would soon refocus on a global supply glut following the failure on Sunday by major exporters to rein in oversupply.Currently both crude benchmarks are seen retreating lower, with WTI now losing -0.56% at $ 40.96 while the Brent oil drops -0.61% to $ 42.65. Gold gave back oil inspired gains this morning to trade at 1231.90 down $3.10 in the Asian session.

• Stocks: Stocks markets also reversed initial weakness and DJIA closed up 106.7 pts, or 0.60%, to close above 18000 handle at 18004.16. S&P 500 rose 13.61 pts, or 0.65%, to close at 2094.34. Nikkei follows and is now trading up 560 pts, or 3.4% at the time of writing.

• Currencies: Currency markets followed with yen trading broadly lower for the weak. Commodity currencies, to a lesser extent Canadian dollar, reversed initial loss this week and are trading higher.

On the data front, Germany ZEW economic sentiment is the main focus in European session while current account will also be released. US will release housing starts and building permits.

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