Following volatility the day before, oil prices surged on Tuesday, awaiting the weekly data release on US inventories. The number for the week ending April 29 surprised analysts with a staggering 500% jump above expectations, showing 2.78 million barrels, which was followed by an expectation of 500 000 barrels for the subsequent week.
The data release on German factories, mines and utilities showed a 1.3% drop in the seasonally adjusted monthly output, falling short of analyst expectations of a 0.2% decline. This puts the German industrial output on course to a 0.3% yearly rise, aggrieving analysts who forecast a 1.1% advance.
The Chinese CPI proved its stability with a 2.3% year-on-year increase for the third consecutive month. The growth in consumer prices is fuelled by an increase in demand as well as more expensive food and fuel, with pork prices being a major contributor with a 30% surge over the last year.
The recent disappointing Chinese trade data put pressure on the Aussie and Kiwi. The New Zealand Dollar traded 0.8% lower at $0.6780 against the US Dollar by 15:00 GMT on the New York Stock Exchange on Monday, whereas the Greenback increased 0.2% to 94.04 points.
The largest US stock markets traded slightly higher by 14:30 GMT. The Standard & Poor's 500 Index jumped around 0.2% to 2,060.30 points, whereas the Nasdaq Composite Index added almost 0.4%, trading at 4,753.10 points, as soon as the Fed released its promising Labour Market Conditions Index.
According to the latest data released on Monday, the monthly Labour Market Conditions Index in the United States improved to a negative 0.9 reading in the fourth month of the year, following the last month's –2.1 and surpassing the -1.0 forecast. It was the fourth consecutive month since the Index remained in the negative zone.
The Halifax House Price Index's growth rate in the United Kingdom decreased to 9.2% year-over-year in the fourth month of the year, following the 10.1% reading seen in the previous month. In the meantime, the country's House Price Index declined 0.8% on a monthly basis in April.
Despite a more-than-expected oil inventory rise reported on Wednesday, concerns over further potential oil supply disruptions from Canada and Libya pushed oil prices higher on Thursday. WTI increased around 4.7%, while Brent jumped 4.2%, trading at $45.83 and $46.50 per barrel respectively on the London Stock Exchange by 13:10 GMT.
US stock markets opened higher on Thursday as buying was triggered on the rise in oil prices. As the North American trading session started, the S$P 500 Index jumped around 0.3% to 2,056.20 points, whereas the Dow Jones Index gained 0.2% and the Nasdaq Composite Index added 0.3%, opening at 17,693.10 and 4,738.70 points respectively.
Initial Jobless Claims in the United States increased more-than-expected in the week ending April 30. According to the Department of Labour, initial filings for unemployment aid rose 17,000 to 274,000, posting the biggest increase since February 2015 and surpassing analysts' forecasts for a 260,000 rise.
The Markit UK Services Purchasing Managers' Index came in at 52.3 in the fourth month of the year, following March's 53.7 points and registering the worst result in the past three years in April. In the meantime, analysts expected the final Services PMI to decrease to 53.5 points.
On Wednesday, the Energy Information Administration's weekly report revealed that crude oil inventories in the US increased by 2.8 million barrels in the period ended April 29, following a 2.0 million increase seen in the previous seven days and surpassing analysts' forecasts for a 0.5 million gain.
The ISM Non-Manufacturing Index jumped to 55.7 points in the fourth month of the year, following March's 54.5 reading and surpassing analysts' expectations of 54.8. Meanwhile, the Markit Services PMI for the United States improved to 52.8 from the initial reading of 52.1 and March's 51.3 points.
ULC in the United States' private sector jumped 4.1% in the first three months of the year, according to the latest data released on Wednesday. In the meantime, US hourly compensation grew 3.0% in the Q1 of 2016, whereas productivity posted a 1.0% decrease. Unit labour costs rose 2.3% over the past four quarters.
According to the Department of Commerce, the country's trade deficit dropped 13.9% month-on-month to $40.4 billion in the third month of the year, following February's $46.9 billion gap and posting the narrowest deficit since November 2014. Meanwhile, US exports declined 0.9% and imports slipped 3.6% to $176.6 billion and $217.1 billion respectively.
US businesses added 156,000 new workers in the fourth month of the year, according to the ADP Employment Report released on Wednesday, whereas analysts expected payrolls to grow by 196,000. Meanwhile, the previous month's figure was revised downwards from 200,000 to 194,000.
The Bullion lost almost 0.8% against the US Dollar, trading at $1,286.10 per troy ounce by 15:20 GMT on the New York Stock Exchange. In the meantime, the Greenback regained its position after 15-month lows, despite Monday's disappointing release of the US ISM Manufacturing PMI.
According to the latest GlobalDairyTrade auction, dairy prices dropped 1.4% to $2,203 per metric ton after the 3.8% increase to $2,263 registered on April 19. In the meantime, the Kiwi declined around 1% against the Greenback, trading below the $0.70 level by 14:00 GMT on the London Stock Exchange.
On Tuesday, the European Commission revised downwards its GDP growth forecast for the Euro zone to 1.6% from the previous year's 1.7% result and the 1.7% growth outlook reported in February, whereas the European Union's GDP growth forecast was lowered to 1.8%, following the last year's 2% growth and February's 1.9% projection.
Data on UK's PMI surprised investors on Tuesday by entering negative territory with 49.2 points, plunging from 50.1 points in March. Investor Expectations were missed by 2 points as result to falling output and rising uncertainty over global and domestic economic conditions, which are believed to contribute to a further downturn during the second quarter.
The Chinese Caixin manufacturing PMI showed a 0.3 point drop from the month before at 49.4 points, continuing the recessive trend that has pushed the measure in negative territory for the 14th consecutive month. The indicator was 0.4 points short of investors' expectations and it is thought that the economy is still in need for a solid recovery foundation.
Asian stocks surged with Australia leading the trend on Tuesday, following a rate cut by the RBA. While Japanese markets closed for Constitution day, the Shanghai Composite index spiked by 1.4% to show 2 979.75 points at 5:00 GMT, while the Hang Seng index fell 1.1% and traded at 20 828.69 points at 5:00 GMT.
The Australian Dollar dropped 1.3% after the RBA announced cutting rates to a record low 1.75%. The Aussie hovered around the $0.7700 mark before the announcement, and plunged to $0.7563 right after the news came out at 4:30 GMT. The RBA explains the rate cut with fears of a stronger Australian Dollar that can potentially harm economic adjustment.
Building approvals in Australia exceeded expectations, as the data release on Tuesday showed a 3.7% jump, topping the 3.1% gain in February. This is an unexpected positive development, as investors had forecast a 3% drop, however, the measure still did not reach last year's levels, remaining 6.5% lower.