Crude Oil
A double shot of weak European data and an International Energy Agency decision to trim its demand outlook sent crude futures plunging on Tuesday. Crude plunges on European data, IEA revision to global demand oil plunges on IEA move to cut demand forecast. The International Energy Agency trimmed its global oil demand forecast for the fourth month in a row earlier Tuesday, stoking fears that global supplies remain ample while demand cools across the globe. The agency said it now expected global oil demand for 2014 to total 92.4 million barrels a day, down 200,000 barrels per day from its September report. The IEA added that it believes that demand growth "may have touched bottom" and should steadily improve.
Soft European data bruised prices as well by stoking fears demand for the growth-sensitive commodity may cool even more. The ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October.
Gold futures held steady but came off earlier highs on Tuesday after soft European data weakened the euro and sent investors snapping up greenback positions. Gold gives back gains as dollar regains footing on soft European data gold holds steady on demand from investors seeking safe haven from volatile equities markets. Soft European data gave the dollar a boost on Tuesday, though gold stayed in positive territory on demand from investors seeking safe-haven to digest turbulence in equities markets. The ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October. European Central Bank President Mario Draghi has said monetary authorities will do what it takes to steer the continent away from deflationary declines, and Tuesday's data sparked expectations that further stimulus measures may be needed to kick-start the economy.
