By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures declined Wednesday as euro-zone debt fears shook markets once again, this time with Germany in the teeth of the storm, and data from the U.S. and elsewhere came in mostly negative.
Crude for January delivery declined $2.27, or 2.3%, to $95.78 a barrel on the New York Mercantile Exchange CL2F -2.49% , with losses during Asian and European trading hours picking up as U.S. stocks opened sharply lower.
Germany’s bond auction on Wednesday essentially failed, underscoring fears that the bloc’s sovereign-debt crisis can drag down even its strongest economy.
“This highlights the lack of confidence in even the strongest economy in Europe, causing a flight from (euro-zone) debt, from equities, from the euro...and from crude,” said Matt Smith, an analyst with Summit Energy, in a note to clients.
Germany attempted to sell 6 billion euros in 10-year bonds, but attracted bids just under 4 billion. Read more about Germany's bond auction.
Meanwhile, a gauge of manufacturing activity in China showed a contraction. The HSBC preliminary purchasing managers index declined to 48 in November, from 51 in October. Read more on China’s manufacturing data.
Closer to home, consumer spending rose 0.1% in October, the Commerce Department said. Personal income rose faster, up 0.4%, its biggest increase since March as Americans set aside more savings. Read more on consumer spending and personal income.
Durable-goods orders fell 0.7% last month, but the drop was less steep than analysts had forecasted. Read more on durable-goods orders.
New applications for unemployment benefits rose to 393,000 in the latest weekly data, compared to expectations of a rise to 390,000.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
