Chinese stocks declined to lead most Asian markets lower today, as a recent spike in Shanghai interbank interest rates fueled worries about the world’s second-largest economy. The Hang Seng Index in Hong Kong fell 1.5%, dropping for a fifth straight session to stay close to nine-month lows, while the Shanghai Composite tumbled 2.2%.
Light sweet crude futures for delivery in August are trading down 5 cents at $ 93.64 per barrel on the New York Mercantile Exchange. It fell 1.3% Friday to settle the week at $.89 a barrel by close of trade.
Oil prices plunged 3% on Thursday after Fed Chairman Ben Bernanke said the central bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
The bank said it expects the U.S. economy to grow between 2.3% and 2.6% in 2013. The Fed also said it expects the unemployment rate to fall to between 6.5% and 6.8% by the end of 2014 and inflation to edge closer to its 2% target.
Meanwhile, concerns over China’s economic outlook also weighed after data Thursday showed that manufacturing activity hit a nine-month low in June. China’s HSBC preliminary manufacturing purchasing managers’ index fell to 48.3 in June from 49.2 in May as new orders declined, indicating that the slowdown in manufacturing is worsening.
MCX July crude oil futures may open today’s session near Rs 5600 levels with support around Rs 5550 levels.
In the coming week, investors will be closely watching U.S. data on durable goods orders, jobless claims and consumer confidence for signs that the economic recovery is on track.
Source by Commodity Insights
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