19 Jan 2016
Oil's initial recovery set the scene - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that oil's recovery paved the way for a turnaround Tuesday, as the commodity surged around 3% from multi-year lows, following Chinese data showing that demand for the commodity in the country will likely hit a record high in 2015, despite ongoing fears over an economic slowdown.
Key Quotes:
"The day started with the release of tepid macroeconomic figures in China, which showed that industrial production growth slowed to 5.9% y/y from 6.2%, fixed investment to 8.3% y/y from 10.2%, GDP to 6.8% y/y from 6.9%, and retail sales slowed to 10.7% from 11%. Stocks however, edged higher in Asia, boosting investors' mood.
European data was far from shocking, with inflation in the EU matching expectations in December, still within deflationary levels, flat monthly basis, and up by 0.2% compared to a year before.
The German ZEW survey showed that economic sentiment continued declining in January down to 10.2 against previous 16.1, albeit above expectations of 8.2. Sentiment in the EU, however, resulted much worse-than-expected in the same month, down to 22.7."
Key Quotes:
"The day started with the release of tepid macroeconomic figures in China, which showed that industrial production growth slowed to 5.9% y/y from 6.2%, fixed investment to 8.3% y/y from 10.2%, GDP to 6.8% y/y from 6.9%, and retail sales slowed to 10.7% from 11%. Stocks however, edged higher in Asia, boosting investors' mood.
European data was far from shocking, with inflation in the EU matching expectations in December, still within deflationary levels, flat monthly basis, and up by 0.2% compared to a year before.
The German ZEW survey showed that economic sentiment continued declining in January down to 10.2 against previous 16.1, albeit above expectations of 8.2. Sentiment in the EU, however, resulted much worse-than-expected in the same month, down to 22.7."