Here are the top five things you need to know in financial markets on Monday, May 16:
Oil jumps as Goldman says market in deficit
Oil prices jumped more than 1% after Goldman Sachs (NYSE:GS) said an almost two year run of oversupply is coming to an end as the market likely flipped into a deficit in May following various disruptions to global supply.
Goldman also raised its U.S. crude price forecast to $50 a barrel for the second half of 2016, from $45 in March.
However, Goldman warned that the market would flip back into oversupply in the first half of 2017.
European shares lower
European shares started the week lower as disappointing Chinese economic reports over the weekend fueled investor concerns over the health of the global economy.
London’s FTSE 100 was hit by fears over a looming referendum on European Union membership, while the Frankfurt Stock Exchange was among European markets closed for a holiday.
U.S. futures pointed to a lower open on Wall Street.
China economic data disappoints in April
China's investment, industrial output and retail sales all rose more slowly than expected in April, adding to concerns over the outlook for the world's second-largest economy.
Data on Saturday showed that factory output slowed to 6% in April, against expectations of 6.5%.
Norway fund to sue Volkswagen over emissions scandal
Volkswagen admitted last year that it had used secret software in its cars to cheat exhaust emissions tests.
Norway's fund, the world’s largest, is estimated to have suffered losses running into hundreds of millions of dollars on its stake in Volkswagen since the scandal broke last September.
G7 leaders agree on need for fiscal steps: Japan PM
Japanese Prime Minister Shinzo Abe said Monday that a majority of Group of Seven leaders agree on the need to deploy fiscal policies to boost slow growth and low inflation.
Japan is to host a summit meeting of G7 finance ministers and central bankers later this week amid speculation that Tokyo has been trying to get support for action to weaken the strong yen.
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