By Vadim Iossub, Alpari
The Baker Hughes oil reserve report showed a rise in drilling rigs last week to 462 from 357 a week earlier. As a result, the price of Brent dropped from $46.5 to $45.2 per barrel, updating a minimum which stood since 11th May. By the end of the day, the quotes had recovered to $45.7. On Monday morning the price of oil has been trading in no particular direction and in a $45.6-$45.9 narrow range.
The US stock markets were trading close to the recently set maximum on Friday and the Asian markets this morning have shown a rise with the Nikkei 225 rising by 0.3%. The ASX Australia was up 0.6%. The Shanghai Composite increased 0.2%, and the Hang Seng was down by 0.2%. Futures for the S&P500 were trading at 2166; 0.1% below the closing level of the previous trading day.
2,619,000 new enterprises were registered in China in the first half of 2016. This number corresponds to an average of 14,000 new enterprises per day. This is a 28.6% rise on the figures from last year. However, if we take into account the businesses that fell into liquidation, the number has fallen 878,200, thereby a 9,600 real rise per day. Around 95% of the new enterprises are in the private sector, highlighting the perseverance of investment amongst the population. By the end of June, the private sector”s share of businesses exceeded 90% for the first time. Foreign capital was also up in comparison with that of last year; rising 14.8% on last year”s figures with a 22,000 rise in registered. Over 80% of the new enterprises are in the service sector, the vast majority of which being small enterprises.
The USD was trading down against the yuan this morning at 6.6778 (-0.0017 or -0.03%).
The G20 meeting on the weekend didn”t give any impetus to markets. The EUR/USD is under pressure on the Asian session, dropping to 1.0950; a minimum since the Brexit result. However, the rate later restored to 1.0975. The IFO is publishing July data for economic expectations, business optimism and its assessment of the current economic situation in Germany today, with a July index for the industrial sector in the US coming out of the Dallas Fed.
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Article submitted by Alpari.com