Oil.....
Crude oil futures are trading steady above $108 an ounce in the Asia
electronic session today buoyed by the China move in which it removed
the lower limit on interest rates for banks, to help lenders attract
more borrowers and spur economic activity.
The move by People's Bank of China, a key step in plans for liberalizing the country's interest rate regime, will remove a floor on lending rates set at 70% of benchmark lending levels set by the central bank. The move will reduce financing costs of domestic companies and improve the allocation of financial resources.
In Asia, Japan’s Nikkei Stock Average was flat at the midday break, while China’s Shanghai Composite slipped 0.3%, and Hong Kong’s Hang Seng Index gave up 0.2%. The performance in Tokyo came after the ruling Liberal Democratic Party’s coalition easily won a majority of the 121 seats contested in the upper house elections over the weekend.
Light sweet crude oil futures for September delivery are trading up 16 cents at $ 108.03 per barrel on the New York Mercantile Exchange. On the week, it advanced 2.1%, the fourth consecutive weekly gain. It has rallied nearly 14% over the past four weeks.
Appetite for riskier assets improved last week after Bernanke said in testimony to Congress that there was no set timeline for the central bank to withdraw its stimulus measures. Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”
Oil prices were also supported after Wednesday’s bullish U.S. inventory report showed that crude oil inventories fell by 6.9 million barrels last week, compared to expectations for a decline of 2 million barrels. Crude supplies in the U.S. are down 27.1 million barrels in three weeks ended July 12, the most in weekly statistics dating back to 1982.
MCX August expiry crude oil futures may open today’s session near Rs 6440 levels with resistance near Rs 6470 levels.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing to further gauge the strength of the U.S. economy. Market players will also be looking ahead to Wednesday’s data on Chinese manufacturing activity, amid ongoing concerns over the country’s economic outlook.
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The move by People's Bank of China, a key step in plans for liberalizing the country's interest rate regime, will remove a floor on lending rates set at 70% of benchmark lending levels set by the central bank. The move will reduce financing costs of domestic companies and improve the allocation of financial resources.
In Asia, Japan’s Nikkei Stock Average was flat at the midday break, while China’s Shanghai Composite slipped 0.3%, and Hong Kong’s Hang Seng Index gave up 0.2%. The performance in Tokyo came after the ruling Liberal Democratic Party’s coalition easily won a majority of the 121 seats contested in the upper house elections over the weekend.
Light sweet crude oil futures for September delivery are trading up 16 cents at $ 108.03 per barrel on the New York Mercantile Exchange. On the week, it advanced 2.1%, the fourth consecutive weekly gain. It has rallied nearly 14% over the past four weeks.
Appetite for riskier assets improved last week after Bernanke said in testimony to Congress that there was no set timeline for the central bank to withdraw its stimulus measures. Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”
Oil prices were also supported after Wednesday’s bullish U.S. inventory report showed that crude oil inventories fell by 6.9 million barrels last week, compared to expectations for a decline of 2 million barrels. Crude supplies in the U.S. are down 27.1 million barrels in three weeks ended July 12, the most in weekly statistics dating back to 1982.
MCX August expiry crude oil futures may open today’s session near Rs 6440 levels with resistance near Rs 6470 levels.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing to further gauge the strength of the U.S. economy. Market players will also be looking ahead to Wednesday’s data on Chinese manufacturing activity, amid ongoing concerns over the country’s economic outlook.
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