Oil prices rose sharply on Tuesday, moving further away from last week's multi-month lows as investors gauged the health of the global economy. Oil prices rally more than $1 with global economy in focus Crude oil futures rise with global economy in focus. Official data released earlier showed that China’s economy expanded at an annual rate of 7.3% in the third quarter, down from growth of 7.5% in the preceding quarter. While the figure exceeded market expectations of 7.2%, it was also the slowest expansion since the first quarter of 2009. A separate report showed that industrial production rose by an annualized rate of 8.0% in September, compared to forecasts for a 7.5% increase, after a 6.9% gain in the previous month. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, Reuters reported that the European Central Bank is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area.
GOLD
Gold prices rallied to a five-week high on Tuesday, following reports that the European Central Bank is considering corporate bond purchases and could decide on the matter as soon as December. Gold tops $1,255 amid ECB bond-buying speculation Gold futures rise to 5-week high Reuters reported that the European Central Bank is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area. The report said the ECB could activate the new stimulus plan as soon as December and start bond purchases by early next year. The central bank began purchasing covered bonds on Monday in a bid to increase liquidity in the region. Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge. Meanwhile, investors continued to speculate over the timing of a rate hike in the U.S. after a report showed that U.S. existing home sales rose to a 12-month high in September.
