FX:Crude dips on soft U.S., European manufacturing data
Forexpros - Crude oil futures softened in Asian trading on Tuesday after manufacturing reports disappointed in the U.S. and failed to inspire in Europe.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD88.96 a barrel on Tuesday, down 0.15%, off from a session high of USD89.08 and up from an earlier session low of USD88.86.
Soft factory data in the U.S. and in Europe sent oil prices falling after making earlier gains depicting an improving economy in China.
A final eurozone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March though still stuck in contraction territory for the 16th consecutive month.
Meanwhile in the U.S., manufacturing activity weakened unexpectedly in November, shrinking for the first time in three months.
In a report, the Institute for Supply Management revealed that its index of purchasing managers fell to 49.5 in November from 51.7 in October.
Analysts had expected the ISM index of purchasing managers to decline to only 51.3 in November.
The numbers disappointed investors after similar data out of China fueled hopes the global economy may be turning a corner and headed for more robust growth.
Official data in China released earlier revealed the country's manufacturing purchasing managers' index rose to an annual rate of 50.60 for November from 50.20 in the preceding month.
The data met expectations, though the number was strong enough to fuel hopes China will stick with a 7.5% gross domestic product growth target for 2013.
Meanwhile, China's official service-sector purchasing managers' index hit 55.6 in November from 55.5 in October.
Separately, HSBC's final purchasing managers' index for China hit 50.5 in November, beating with analysts calls for a 50.4 final reading for the month.
Ongoing tensions in the Middle East prevented the commodity from falling too far.
On the ICE Futures Exchange, Brent oil futures for January delivery were up 0.03% and trading at USD110.86 a barrel, up USD21.90 from its U.S. counterpart.
