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Oil falls to 22 month low as economic gloom deepens |
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- Some of the significant economic news released yesterday are Oil's decline deepened to below $54 a barrel on Wednesday, pressured by economic weakness that will further erode the world's demand for fuel. Bank of England policymakers voted unanimously for this month's 150 basis point cut in interest rates, and even considered a bigger reduction given the sharp deterioration in prospects for inflation and the economy. In addition, UK Manufacturing book balance is slightly up to -30 vs. -39 in October. U.S. consumer prices plummeted at the sharpest rate on record in October as a slowing economy caused energy costs to drop for a third straight month, according to a Labor Department report on Wednesday. The widely watched Consumer Price Index fell 1 percent, exceeding forecasts by Wall Street analysts for a 0.8 percent decline and the biggest drop since the department began monthly data in 1947. Core prices, which exclude food and energy items, declined 0.1 percent in contrast to the 0.1 percent advance that had been forecast. Also, U.S. Oct housing starts fell 4.5%. The data on the crude oil inventories was released and has shown crude oil stocks up 1.6mln barrels to 126.9mln barrels, Distillate stocks are down 1.5mln barrels to 126.9mln barrels, Gasoline stocks were up 500,000 barrels to 198.6mln barrels. |
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Based on the above review the following markets were affected: |
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Forex: |
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- Euro-dollar opened its trading on Wednesday at $1.2619 then it steadied slightly before it increased strongly to $1.2814. Euro-dollar then slumped sharpply to reach $1.2482 Later, Euro-dollar increased slightly before it closed its trading at $1.2487. |
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Metals: |
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- Spot Gold opened its trading on Wednesday at $738.17 per ounce then it soared before it rose strongly more than 15$ to $762.91 per ounce. Spot gold however declined sharply about 30$ to reach at $731.61 per ounce. Later, Spot Gold increased before it closed its trading at $734.21 per ounce. |
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Crude Oil: |
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- WTI Nymex December light sweet crude oil opened its trading on Wednesday at $54.49 per barrel. Crude Oil rose slightly to its highest level to reach $55.30 per barrel. WTI Nymex December closed its trading at 19:30 GMT at $53.64 per barrel. WTI Nymex January light sweet crude oil has closed its trading at $53.76 per barrel. |
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Indices: |
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- Dow Jones Industrial Average opened its trading on Wednesday at 8451 point, then it climbed to 8489 point. However, Dow Jones fell down sharply about 500 point to reach 7969 point. Later, Dow Jones closed its trading at 8000 point. |
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