Forexpros – Crude oil futures dipped in European morning trade on Tuesday, as volumes remained light in holiday thinned trade and investors remained cautious over the outlook for global economic growth.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD104.74 a barrel, slipping 0.12%.
Oil prices were largely unchanged after official data showed that an index of Chinese manufacturing activity rose to a 13-month high of 53.3 in April from 53.1 the previous month, but the data came in slightly below forecasts for a reading of 53.6.
The reaction to the data was somewhat subdued with many markets in Asia including China, Hong Kong, India and Singapore, as well as in Europe closed for national holidays.
Also Tuesday, the Reserve Bank of Australia surprised markets with a larger-than-expected interest rate cut to 3.75%, its lowest level since early 2010, in an attempt to boost the nation’s commodity-linked economy.
Meanwhile, fears that the U.S. recovery is losing momentum lingered after data on Monday showed that manufacturing activity in the Chicago area slowed significantly more-than-expected in April, while a separate report showed that consumer spending slowed last month.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
In addition, data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the euro zone.
Market participants were shifting their focus to U.S. monthly jobs figures for April, to be released Friday after data in March showed a slowdown in hiring in the world’s largest oil consumer.
On the ICE Futures Exchange, Brent oil futures for June delivery inched up 0.05% to trade at USD119.53 a barrel, up USD14.79 from its U.S. counterpart.
Forexpros
