Good morning! Here what you need for know for Wednesday.
Demand For OPEC’s Oil Sinks To A 12-Year Low. The Organisation of Petroleum Exporting Countries lowered its projection for oil demand in 2015 to 28.9 million barrels a day, its lowest level since 2002. “The downward revision reflects the upward adjustment of non-OPEC supply as well as the downward revision in global demand,” OPEC said in its monthly market report.
Oil Sinks Again. Oil prices continue to drop amid fears of a supply glut and weakening demand. US WTI crude futures fell to as low as $US62.25 a barrel, and Brent crude slipped to $US65.29 a barrel, which is just above the five-year low hit Tuesday.
China’s Inflation Slowed To A 5-Year-Low. The consumer price index rose 1.4% in November, below analyst expectations of 1.6%, and a sign of “persistent weakness in the world’s second-largest economy,” Reuters said.
French Industrial Production Slumped. Industrial production fell 0.8% between September and October. Manufacturing output fell 0.2% after a 0.3% gain in September.
US Mortgage Applications Are Up. Mortgage applications jumped 7.3% during the week ending Friday. This partially reverses the prior week’s 7.3% decline.
Markets Are Mixed. Europe is mostly higher after Tuesday’s drubbing. Britain’s FTSE is up 0.1%, France’s CAC 40 is up 0.4%, and Germany’s DAX is up 0.8%. Japan’s Nikkei closed down 2.2%. Hong Kong’s Hang Seng closed up 0.1%. US futures are flat.
No Major US Data. No major market-moving economic reports are scheduled for release Wednesday.
UK’s Trade Deficit Sinks. The UK’s deficit on trade in goods and services is estimated to have fallen to £2.0 billion in October, compared with £2.8 billion in September. This reflects a deficit of £9.6 billion on goods, partly offset by an estimated surplus of £7.6 billion on services. The fall in the trade of goods deficit reflects a sharper fall in imports rather than a rise in exports.
US Extends Scrutiny Of Standard Chartered. The British bank will face three more years of “enhanced oversight,” Reuters writes, over the bank’s alleged violations related to US sanctions on Iran and other countries.
Oil God Is Out. Oil-trading “god” Andrew John Hall is leaving Phibro, a commodities-trading unit Occidental Petroleum purchased from Citigroup in 2009, Bloomberg News reports. According to the Bloomberg report, Hall will focus on his hedge fund, Astenbeck Capital Management, which he founded in 2010. The fund manages about $US3 billion in assets.