Is the Euro-zone sovereign debt crisis weighing on commodity prices?
*The Wall Street Journal, by Dan Strumpf, October 3, 2011:
''Crude Sinks on European Debt Woes
Oil futures were down but off their early lows as Europe's
sovereign-debt crisis fueled worries of weakening demand for crude.
Light, sweet crude for November delivery was down $1.04, or 1.3%, at
$78.16 a barrel on the New York Mercantile Exchange. The contract
had slipped as low as $76.85 in early trade. Brent crude on ICE
Futures Europe exchange was down 83 cents, or 0.8%, at $101.93 a
barrel, off its low of $100.71.
Futures regained some ground after a report on U.S. manufacturing
activity came in better than expected. The ISM manufacturing
index for September was 51.6, compared with 50.6 in August.
Still, market participants remained fixated on events in Europe, where
investor concerns are mounting following news that Greece will miss its
deficit targets this year.
The news sent stock futures lower and stoked concerns that the
continent's sovereign-debt woes would curb economic growth and weaken
demand for crude oil. Oil prices have closely tracked equities in
recent months, as traders look to the stock market for clues about
broader economic sentiment.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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