Oil down on China numbers, futures point to down day

Published at Sep 2, 2015, in Features

Oil may have been up 8% yesterday, but it all but reversed its gains overnight as fresh worries on China threaten to bring down the local market today.

WTI crude finished up overnight at $US45.41 ($A64.71) per barrel, down 7.7% on yesterday’s price, which in turn benefited from a gain of 8.8% on fresh comments from OPEC suggesting it could come to the table on constraining output.

Yesterday’s slide pertained to negative numbers from China, as its official factory gauge fell to three-year lows.

The factory gauge is a key economic indicator of factory activity in China, and worried oil traders as the low number was seen as a sign that China may order less oil for its factories over the coming months.

However, the loss also hinted at broader macroeconomic concerns.

“China’s been a concern over the past several months for a lot of money managers out there in the marketplace,” director of managed futures at brokerage iiTrader, Oliver Sloup, was quoted by The Wall Street Journal as saying.

Meanwhile, Bloomberg said the numbers showed that the factory sector in China had yet to respond to official market stimulus.

Last week the People’s Bank of China lowered benchmark interest rates for the fifth time since November – but it doesn’t seem to be sparking industrial activity.

“Both domestic and external demand are weak,” Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore was quoted by the news service as saying.

“Market sentiment is bad and it’s too early to say the Chinese economy is bottoming out.”

In early trade, ASX Futures were pointing down by about 1.3%.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X